Coinspeaker Ethereum Whales Dump Ether: Are Prices Headed for Steep Decline?
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently under pressure, facing a period of underperformance compared to other major altcoins like Solana. Despite receiving a boost from Wall Street with the introduction of exchange-traded funds (ETFs), Ethereum has not experienced the same level of price appreciation as some of its peers.
Over the past year, Ethereum’s price has increased by 52%, while Solana has surged by more than 600%. This dismal performance has seemingly diminished the confidence of Ethereum’s largest holders, known as “whales,” who have recently started to offload significant amounts of ETH.
Large-Scale ETH Sell-Offs by Whales
A notable player in this sell-off trend is the Ethereum Foundation, the organization behind the development of Ethereum. Recently, the Foundation transferred 35,000 ETH, worth around $94 million, to Kraken, a leading cryptocurrency exchange. Such sales by the Ethereum Foundation have historically been linked to periods of increased price volatility for ETH, leading some market watchers to speculate about potential market tops or bottoms.
In addition, another large Ethereum holder, referred to as a “diamond hand whale,” has moved 25,000 ETH, approximately valued at $74 million, to various exchanges. Data from blockchain analytics firm Santiment indicates that since early July, there has been a noticeable decrease in the number of addresses holding between 10,000 and 100,000 ETH.
Jump Trading, a prominent trading firm, has also reduced its Ethereum holdings significantly. Between late July and early August, the firm moved approximately 88,917 ETH, valued at $276 million, to various crypto exchanges. This large-scale sell-off coincided with notable declines in ETH prices, including a sharp drop on August 5.
Weak Demand for Ethereum ETFs
In addition to these significant sell-offs, there is evidence of waning interest in Ethereum-related investment products. Spot Ethereum ETFs have seen a continuous stream of outflows since mid-August, suggesting that investor appetite for these products is declining.
Even BlackRock’s Ethereum ETF, which recently launched on the Brazilian Stock Exchange on August 28, has not attracted the level of interest initially expected. The tepid response to these ETFs highlights a broader lack of enthusiasm for Ethereum in the current market climate.
Current Price Trends and Market Sentiment
As of now, Ethereum is trading at around $2,496, reflecting a decline of more than 4% in the last 24 hours. Despite some bullish signals, such as a record low in the amount of ETH held on exchanges, which could indicate potential upward price movement, current market indicators are predominantly bearish.
The Relative Strength Index (RSI) shows Ethereum is in oversold territory, signaling that sellers are currently driving the price action. If Ethereum fails to hold a key support level at $2,490, analysts warn that the price could fall further, potentially reaching $2,300. Conversely, a return of buying interest could propel ETH back up towards the $2,800 mark.
next
Ethereum Whales Dump Ether: Are Prices Headed for Steep Decline?
