Selling Pressure Intensifies on Ethereum
Following a recovery phase, the price of Ethereum has surged from $1,700 to $2,600. However, after reaching these highs, the altcoin has seen three consecutive days of losses, currently trading at $2,457 (-3.97% on daily charts).
An AMBCrypto analysis highlights extensive profit-taking among Ethereum investors. After being in the red for two months, they are now aggressively cashing in their profits.
This trend is particularly noticeable among Ethereum whales, with significant sales reported. One whale withdrew 4,677.7 WETH from Aave V3 to sell for $11.52 million in USDC, realizing a profit of $4.717 million. Another deposited 1,000 ETH worth $2.51 million on Kraken after holding them for four years.
Selling activity seems widespread among large Ethereum investors. The net flow ratio of large holders to exchanges dropped to 10% when ETH hit $2,500. As prices declined, large holders resumed selling, pushing whale exchange flow to 19%, a 9% increase in a day.
What Does the Future Hold for ETH ?
The massive whale sell-offs have had a negative impact on Ethereum markets, as recent trends show. In general, increased selling pressure drives prices down as investors offload to secure profits or avoid further losses.
If the current selling activity persists, ETH could see further declines, potentially finding a technical support around $2,188. However, if buyers view the dip as an entry opportunity, ETH still holds growth potential aiming for a level of $2,864.
