Ethereum (ETH) has fallen 6.45% over the past week, making things tough for the world's second-largest cryptocurrency. In general, Ether has recently left investors with a lot of hope, as its price in recent months has fallen by 16.57%. Amid this bear market, a crypto whale has sold all of its Ethereum tokens, garnering significant attention from traders and market experts alike.
ETH Whale liquidates its holdings, incurring huge losses
In an X post on May 11, blockchain tracking platform Lookonchain reported that the crypto whale offloaded all 6,714 ETH tokens at a market value of $19.5 million. Although the profits appear to be quite huge, LookonChain states that investors actually recorded a loss of $6.5 million based on the acquisition price of these tokens.
Whale trading is generally seen as an indicator of market trends and attracts a lot of attention among investors. Therefore, if a whale suddenly sells most or all of its holdings, it could be interpreted as a bearish signal encouraging other investors to follow suit, which could result in a drop in prices. .
However, that is not necessarily the case in the ETH market after the recent whale sell-off. Bitcoin's halving completed in April, and based on historical data, a bull market in the cryptocurrency is expected to begin in the coming months.
So far, Ethereum has proven to be one of the most lucrative assets for investors during this period. Notably, altcoins rose over 2000% in the months following the 2020 Bitcoin halving. Therefore, most ETH investors are likely to hold on to their tokens.
Apart from Ethereum, the whale also liquidated all 428,047 Optimism (OP) and 901,685 Arbitrum (ARB) with losses of $902,000 and $1.08 million, respectively. They incurred a total loss of $8.43 million while offloading their investments in three well-known altcoins.
ETH price overview
At the time of writing, ETH is trading at $2,919, reflecting a slight price increase of 0.27% from the previous day. The altcoin appears to be heading towards the $2,940 resistance zone. If there is enough buying pressure, ETH could push through this region with the next resistance level set at the $3050 price range.
However, the altcoin's daily trading volume has now fallen by 44.85% to a value of $6.71 billion. Ethereum, which ranks as a larger altcoin, is down 40.4% from its all-time high of $4,891.70 reached in November 2021z
ETH trading at $2,921.60 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image is from Smithsonian Magazine Magazine, chart is from Tradingview
