The struggles facing Ethereum prices, especially in the context of this whale reducing its holdings of ETH, may attract market attention and produce certain price fluctuations. The following is an analysis of possible impacts and reasons:

Click the avatar live and enter the live broadcast room to chat!

Background of the whale's reduction

According to on-chain data, this Ethereum whale has held ETH since the creation of Ethereum in 2015, and recently transferred 3,370 ETH, about $11.37 million, to the Kraken exchange on a large scale. This is a consistent operating mode of the wallet, which has sent a total of 48,687 ETH to the exchange over the past period of time, with a value of up to $171.78 million. Such large-scale transfers usually mean that the whale intends to cash out some of its assets by selling.

Market impact analysis

1. Market sentiment and selling pressure

The reduction of whale holdings usually causes market concerns, especially when this money flows into the exchange, which is often seen as a signal that more selling may occur in the market. According to historical data, the selling of whales often increases the selling pressure in the market in the short term, especially in the case of large transactions, which may increase the downward pressure on prices.

This time, the whale sold ETH at $3,528 per ETH, indicating that they are taking a strategic approach to reducing their holdings, seemingly hoping to profit in the current price range. If this whale continues to sell more ETH, it may have a greater impact on the price of Ethereum.

2. Price fluctuations and supply and demand

The price of Ethereum has been struggling recently, mainly due to the relatively large selling pressure in the market, and the reduction of holdings by these giant whales has increased the supply in the market. In theory, this will lead to a drop in prices because the supply increases and demand may not keep up.

However, if the market demand is relatively strong and absorbs these sold ETH, the price may not fall significantly. On the other hand, if market sentiment is more pessimistic, especially when the whale sells and causes panic, the price of ETH may fall rapidly.

Click the avatar live and enter the live room to chat!