Coinspeaker
Massive Dump by Ethereum Whales, ETH Price Drop Soon?
Last week, Ethereum price showed optimism with a recovery to $3,100 eyeing gains ahead. However, the recent activity of Ethereum whales can put short-term pressure on the ETH price.
On-chain data for Ethereum reveals a notable activity by long-term holders aka Ethereum whales highlighting some potential market shifts. Notably, a whale identified as 0x7f1 recently deposited 15,000 ETH, worth over $45.98 million, into the Kraken exchange at $3,065 per ETH.
This transaction has thus sparked some speculation regarding the future price trajectory of Ethereum, reflecting mixed investor sentiment. While some see Ethereum as a promising investment, others are looking to capitalize on the recent fluctuations.
Interestingly, this same whale previously withdrew 120,874 ETH from Kraken at an average price of $1,645 in early September 2022. The whale now holds 105,874 ETH valued at $326 million, with a total profit of $173 million, representing an impressive 87% gain.
Giant whale 0x7f1 deposited 15,000 $ETH (45.98M) to #Kraken at $3,065 4 hours ago.
The whale withdrew 120,874 $ETH from #Kraken at only ~$1,645 in early Sep 2022,
And now still holds 105,874 $ETH ($326M) with a total profit of $173M (+87%)!
Follow @spotonchain and set alerts… pic.twitter.com/3wsgjQd4DI
— Spot On Chain (@spotonchain) May 20, 2024
The Ethereum Price Action Ahead
As per the technical chart of Ethereum, the world’s second-largest cryptocurrency is currently in a bearish downward channel pattern and is currently trading at the resistance point of the channel.
If Ethereum manages to break out of this channel pattern on a daily time frame, there’s a possibility of another 5% bullish move to $3,300 in the coming days. If it fails to do so, there’s enough chance of an ETH price drop to $2,900.
Market data from CoinGlass shows a slight 1.55% decline in ETH’s open interest, alongside a significant 51.55% drop in options volume.
These changes in trading activity could be contributing to Ethereum’s price volatility. The Relative Strength Index (RSI) is currently at 57.35, indicating growing bullish sentiment, which may drive ETH’s price higher in the near term.
Furthermore, as the broader cryptocurrency market anticipates the resurgence of altcoins following the Bitcoin halving event, Ethereum is well-positioned to benefit from upcoming market trends.
As the first round of spot Ethereum (ETH) ETF deadlines approaches this week, anticipation mounts within the market. Key dates include May 23 for VanEck and May 24 for Ark Invest/21Shares.
Recent trends, such as ETHBTC reaching levels last seen in February 2021 and lackluster interest in the options market, suggest a sentiment of expectation for a potential rejection and a non-event scenario surrounding the ETF launches.
