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Recent on-chain data and transactions activity Ethereum whales have been shown to be selling significantly, raising concerns about long-term confidence in the asset. One notable transaction involved Whale, who bought ETH last year for $1,890, moving 12,906 ETH ($24.39 million) from Binance to Lido.
Recently, this same investor withdrew 7,000 ETH from Lido and redeposited it to Binance, securing over $16 million in profits amid market volatility.
The attached graph reveals that the number of large trades decreases with price fluctuations, suggesting a possible correlation between whale activity and price fluctuations. Specifically, there is a noticeable decline in the total volume of large trades, coinciding with periods of price instability.
Profit taking by whales may be influenced by Ethereum's relative poor performance compared to major cryptocurrencies such as XRP and Solana. Although not dramatic, Ethereum's slowing pace in the rapidly evolving crypto landscape may prompt these large holders to reevaluate their positions. It is important to monitor such movements as they can indicate a change in investor sentiment and could lead to a larger market correction.
Furthermore, IntoTheBlock's on-chain metrics show that there is a significant correlation between Ethereum's price and the number of large transactions. This relationship highlights how much these large trading volumes influence Ethereum price trends. The recent decline in trading volume, particularly in April, reflects the decline in Ethereum prices, suggesting that selling pressure from whales is playing a role.
While one big selloff won't spell doom for Ethereum, it does raise some concerns about the sustainability of the current move.
About the author
Armand Sirignan
