Ethereum Whales Withdrawal Triggers Major Price Decline

The supply of ETH on exchanges has surged by 5% following the implementation of Dencun. Concurrently, whales have been actively shorting ETH on these platforms.

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Ethereum (ETH) continues to lose ground, down 9% over the past 24 hours, extending its losing streak.

According to information from CoinMarketCap, the second largest cryptocurrency is still in the red since the activation of the Dencun Upgrade, with weekly losses of up to 18% as the press reports.

Whales are withdrawing

The emergence of market sell-offs has become more widespread, causing fears of a reversal of ETH’s bullish trend. According to data from Spot On Chain, three “whales” are said to have liquidated a total of 26,946 ETH in the past 4 days, raking in nearly $40 million in profits.

One notable development is that an investor transferred 8,870 ETH to Binance on March 16 at a price of $3,733 per coin. This sale brought that person more than 25 million USD in profits.



Source: Santiment

Other data studies, using Santiment to gauge market reaction, show that ETH supply on exchanges has increased by 5% since the Dencun Upgrade was implemented. At the same time, the amount of ETH in important “whale” wallets, from 10,000 to 1 million, has decreased significantly.

The analysis of these two indicators shows that “whales” are withdrawing money from the market. This could be due to experienced investors taking profits when they no longer see positive potential in the asset.

Related: Ethereum Dips Below $4000 But Signals Remain Positive