Ethereum faces steep correction as whales opt for profit-taking
Ethereum’s price loses nearly 7% on the daily time frame, adding to the almost 20% weekly decline.
Three Ethereum whales sold $95 million in Ether, taking nearly $40 million in gains since Friday.
ETH price could sweep the $2,900 level for liquidity before attempting a rebound.
Ethereum (ETH), the second-largest crypto asset by market capitalization, is currently in a state of decline. ETH price is down 7% on the day and almost 20% on the week, wiping out recent gains. On-chain data insights reveal that large-wallet investors, popularly known as whales, are shedding their Ethereum holdings and taking profits, increasing the selling pressure on ETH.
Grayscale amends Spot Ethereum ETF filing, ETH trades sideways below $3,700
Ethereum price crumbles under rising selling pressure
Data from crypto intelligence tracker Spotonchain shows that three large-wallet investors have taken profits on their Ethereum holdings in the past four days. The three Ethereum whales sold 26,946 Ether, worth $95.7 million, and took $39 million in profits. The transactions took place on Binance between March 15 and 19.
As whales shed their Ether, the altcoin’s supply on exchanges has increased. Between March 15 and 19, ETH reserves on exchanges are up from 13.92 million to 14.43 million. An increase in supply on exchanges implies there is a higher volume of Ether available to sell.
As seen in the Santiment chart below, Ethereum price declined alongside this supply increase, supporting the thesis that profit-taking has partly driven the drop in Ether’s price.
Ethereum price could sweep $2,900
Ethereum price is strongly correlated to Bitcoin. Therefore, the price decline seen in BTC likely helped Ethereum’s price to drop as well alongside factors like profit taking and whale activity.
ETH
ETH/USDT 1-day chart
A daily candlestick close below $3,200 (the upper boundary of FVG) would result in a steeper correction that could send ETH price towards support at $2,166.
