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Recent on-chain data shows a surge in large volumes of Ethereum sales by whales. This trend calls into question their long-term prospects for the second-largest cryptocurrency by market capitalization.
Will the withdrawal of Ethereum whales be a decisive turning point for cryptocurrencies?
A notable case involves a whale who bought 12,906 ETH ($24.39 million) last year for $1,890. Recently, this investor moved those funds from Binance to Lido, then withdrew 7,000 ETH from Lido and redeposited it back to Binance, realizing a profit of over $16 million.
This type of activity fits into the more general trend of decreasing volume of large transactions, which coincides with episodes of ETH price fluctuations. This correlation suggests that whale behavior can influence market fluctuations. The significant decrease in the total volume of major trades corresponds to periods of price instability.
The whales’ gains may be explained by Ethereum’s relative underperformance compared to other major cryptocurrencies such as XRP and Solana. Although not dramatic, Ethereum's slowdown in the ever-evolving crypto ecosystem could cause these large holders to reconsider their positions.
Whale influence on Ether price fluctuations
On-chain data provided by IntoTheBlock reveals a strong correlation between the price of Ethereum and the number of significant transactions. This relationship highlights the impact these significant trading volumes have on ETH price behavior.
Recently, a decline in trading volumes, particularly in April, has led to a decline in Ethereum prices, suggesting that selling pressure from whales is having a visible impact.
While a major sale does not necessarily mean the end of Ethereum, it does raise questions about the sustainability of current price movements. These large-scale transfers require careful monitoring as they may signal a change in investor sentiment and could lead to a more significant market readjustment.
As Ethereum whales appear to be realizing profits and reducing their stakes, it is important to analyze the potential impact of these moves on the market. While this does not necessarily predict an imminent crash, this trend highlights the need for investors to remain cautious and closely monitor supply and demand dynamics.
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Passionate about Bitcoin, explorer of blockchain and cryptography, and a challenger at the forefront of communication. It guarantees a free life and free finances, guarantees the safety of Bitcoin, and allows you to maintain a safe life.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
