Ethereum price is surging, but some large whales are choosing to exit ETH USD ahead of the price increase. what’s the matter?
Cryptocurrency prices are on the rise. Following yesterday’s rise, the overall cryptocurrency market cap has increased by almost +0.5% to surpass $2.3 trillion.
Bitcoin
And Ethereum
It remains the most precious thing.
Ethereum price is rising: bullish trend targeting $2,800
While the focus is on Bitcoin, the expansion of ETH prices towards spot prices is providing relief to holders.
After consistently hitting lower lows for days or weeks, a bounce could be the driving force that pushes the coin to new highs.
As ETH bulls aim for the July high of $2,800, some whales appear to be taking advantage of possible FOMO to exit in the opposite direction.
The latest on-chain data shows that whales are moving coins to exchanges. Although it may be difficult to determine whether a property has been sold immediately, such transfers are often a sign of the owner’s intention to sell.
Therefore, analysts interpret any coin transfer to Binance, Kraken, OKX or any centralized cryptocurrency exchange as bearish.
But… are Ethereum whales being cashed out?
This morning, a whale named “myparagon.eth” moved 4,056 ETH, worth about $10.6 million, to Binance.
This transfer follows the address’s decision to stake 4,050 ETH through Lido Finance about three weeks ago. From this staking, the whale received 6ETH as profit.
(source)
If the Ethereum whale were sold at the spot price, the 4,056 ETH would yield a profit of $1.23 million, as the price has steadily stabilized before rising yesterday.
The address is not unique.
Another dormant whale deposited 3,888 ETH into Gemini earlier today. This stash, worth over $10 million, is part of 6,603 ETH that the address received from Bitfinex about 18 months ago.
(source)
At the time, each coin cost $1,785. The address moved 3,888 ETH to Gemini but still holds 2,715 ETH, worth over $7.1 million at the spot rate.
These whales are likely to liquidate their stash for USDT or other coins.
Ethereum Price Analysis: Will You Regret Selling Your Whale?
However, if they sell, it remains to be seen whether they will regret their decision.
Analysts are convinced that the second most valuable coin is undervalued.
(ETHUSDT)
Looking at the daily chart, local resistance is at $2,800. If yesterday’s gains are confirmed, Ethereum could easily float above $3,000.
However, if the bulls go ahead and close clearly above $3,500, this would signal a sharp change in trend and could possibly create the basis for another moonshot to $4,100 in a buy trend continuation formation.
Ethereum Layer-2 Extension
Here’s a primer that could support ETH’s strength going forward. Even though the number of coins burned has decreased since Dencun went live, builders are hard at work.
Layer 2 is particularly booming and expanding rapidly. As of mid-October, all of Ethereum Layer 2 had over $38 billion in assets under management.
(source)
Additionally, more layer 2s are scheduled to launch on Ethereum, including Pepe Unchained, a platform dedicated to meme coins, and Unichain from Uniswap, one of the world’s largest DEXs.
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Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You may lose all your capital.