In recent times, there has been a surge in activity among Ethereum (ETH) whales on the blockchain. This development raises questions about the long-term confidence of these whales as they sell substantial amounts of Ethereum. Of particular note is a whale who purchased Ethereum at $1,890 last year and subsequently transferred approximately 12,906 ETH worth around $24.5 million from Binance to Lido. This transaction was quite remarkable.
Whale’s Ethereum Profit Leaves People in Awe
The same investor recently withdrew 7,000 ETH from Lido and reinvested it in Binance, earning an impressive $16 million in a volatile market. These movements also indicate a decrease in the number of large transactions, which coincides with fluctuations in Ethereum prices.
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Charts reveal that the decline in the volume of large transactions corresponds with periods of price instability. Ethereum’s relatively lackluster performance in comparison to other cryptocurrencies like XRP and Solana could potentially impact the motivation of whales to seek profits. If Ethereum continues to fall behind in the rapidly evolving crypto landscape, major holders may reconsider their positions. Such actions could be indicators of significant adjustments that may lead to larger shifts in market sentiment.
The Correlation Between ETH Price and Large Transactions
Furthermore, measurements conducted by IntoTheBlock on the blockchain demonstrate a significant correlation between Ethereum prices and the number of large transactions. This connection underscores the influence that large transaction volumes have on Ethereum’s price dynamics. The decline in transaction volume observed in April reflects a drop in Ethereum’s price, indicating effective selling pressure from whales.
It is important to note that a single sale does not spell doom for Ethereum. Nevertheless, there are concerns surrounding the sustainability of current whale movements. The Ethereum community is closely monitoring the activities of these major players.
At the time of writing, Ethereum has surpassed the $3,200 resistance level, with its price reaching $3,221 on the Binance cryptocurrency exchange. It can be said that the movement of ETH’s price aligns with that of Bitcoin, but it tends to experience sharper declines compared to BTC. The last time Ethereum crossed the $3,200 mark was on February 27, while Bitcoin was valued at $62,000 on that date.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
