Ethereum (ETH) fell 6.45% last week, a major decline for the world’s second-largest cryptocurrency. In general, Ether has given investors a lot of hope, with a 16.57% price drop in recent months. Amid this bear market, one cryptocurrency whale sold all of its Ethereum tokens, garnering a lot of attention from traders and market experts alike.
ETH Whale liquidates its holdings and suffers significant losses
In a May 11 Although the profits seem quite large, LookonChain says investors actually recorded a loss of $6.5 million based on the acquisition price of these tokens.
Whale trading receives a lot of attention among investors because it is generally considered an indicator of market trends. Therefore, if a whale suddenly sells a significant portion or all of its holdings, this may be interpreted as a bearish signal that will encourage other investors to follow suit, causing prices to fall.
However, this may not necessarily be the case for the ETH market after the recent whale sell-off. With the Bitcoin halving completed last April, a cryptocurrency bull market is expected to begin next month based on historical data.
Previously, Ethereum has proven to be one of the most lucrative assets for investors during this period. In particular, in the months following the Bitcoin halving in 2020, altcoins rose by over 2000%. Therefore, most ETH investors are likely to hold the token.
In addition to Ethereum, whales also liquidated 428,047 OP (Optimism) and 901,685 Arbitrum (ARB) with losses of $902,000 and $1.08 million, respectively. They lost a total of $8.43 million as they offloaded their investments in three major altcoins.
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ETH price overview
At the time of writing, ETH is trading at $2,919, reflecting a slight gain of 0.27% over the past day. The altcoin appears to be heading towards the $,2940 resistance zone. If there is enough buying pressure, ETH may break through this area towards the next resistance level set at the $3050 price range.
However, the altcoin’s daily trading volume has now decreased by 44.85% to a value of $6.71 billion. Ethereum, considered a larger altcoin, remains 40.4% off its all-time high of $4,891.70 reached in November 2021.
ETH trading at $2,921.60 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image from Smithsonian Magazone, chart from Tradingview