In recent times, there has been a surge in the activity of Ethereum (ETH) whales on the blockchain. This development suggests that whales are offloading significant amounts of Ethereum, raising doubts about their long-term confidence. Of particular note, a whale who acquired Ethereum last year at a price of $1,890 and subsequently transferred approximately 12,906 ETH, valued at around $24.5 million, from Binance to Lido, made a remarkable transaction.
Whale’s Ethereum Profit Shines
More recently, the same investor withdrew 7,000 ETH from Lido and reinvested it in Binance, earning over $16 million in a volatile market. These movements also indicate a decline in the number of large transactions, which aligns with the fluctuations in Ethereum prices.
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Charts reveal that the reduction in the volume of large transactions coincides with periods of price instability. Ethereum’s relatively lackluster performance compared to other cryptocurrencies like XRP and Solana could impact whales’ motivation to generate profits. Ethereum’s lag in the rapidly evolving crypto landscape might prompt major holders to reassess their positions. Such actions could serve as precursors to significant adjustments that could result in major shifts in market sentiment.
There is a Connection Between ETH Price and the Number of Large Transactions
Furthermore, analysis conducted by IntoTheBlock on the blockchain demonstrates a significant correlation between Ethereum prices and the number of large transactions. This connection underscores the influence of large transaction volumes on Ethereum’s price dynamics. The decline in transaction volume observed in April corresponds to a drop in Ethereum’s price, indicating effective selling pressure from whales.
It is evident that a single sale does not spell doom for Ethereum. However, there are concerns surrounding the sustainability of the current movements by whales. The Ethereum community continues to closely monitor the activities of these influential players.
At the time of writing, when examining the Ethereum price, it is apparent that ETH has surpassed the resistance level of $3,200. Ethereum’s price has climbed to $3,221 on the cryptocurrency exchange Binance. It can be inferred that ETH’s price moves in tandem with Bitcoin, but it also experiences more significant declines compared to BTC. The last occasion when Ethereum crossed the $3,200 mark was on February 27, while Bitcoin was valued at $62,000 on that date.
Disclaimer:
The information presented in this article should not be construed as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks, and should conduct their own research.
