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Ethereum (ETH) Price Suffers as Key Investors Opt to Sell  

2 mins
Updated by Ryan Boltman
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In Brief

  • Ethereum’s price is currently in a falling wedge, which is known to be a bullish reversal pattern.
  • The whales have sold over 700 million ETH worth over $2.32 billion in the last two weeks.
  • The investors in profit are dominating the participation at the moment, suggesting potential selling.
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Ethereum’s (ETH) price is set to face the impact of not just its whales selling but dumping by all its investors.

The consequent impact on price could bring the second-generation cryptocurrency to multi-week lows.

Ethereum Investors Appear Skeptical

Ethereum’s price recently lost a key support level owing to the broader market cues and the rising pessimism among ETH holders. The biggest sign of this can be noted in the behavior of the whales.

Whales tend to have the most impact on an asset, given that they have the largest wallet. In the case of ETH, however, the whales do not appear very hopeful of profits. The addresses holding between 100,000 and 1 million ETH have sold close to 700 million ETH in the last two weeks. 

The selling of this $2.32 billion worth of supply has brought down their total holdings to 20.26 million ETH. Since whales are known even during bear markets, their sudden selling does raise concern.

Read More: How to Invest in Ethereum ETFs?

Ethereum Whale Holding.
Ethereum Whale Holding. Source: Santiment

Secondly, the sales among retail investors have also seemingly surged.

Upon observing the active addresses by profitability, it can be seen that about 25% of the users are in profit. The reason why they are conducting transactions on the network is most likely to book profits.

When this indicator is under 25%, the chances of selling by ETH hodlers are rather low. However, since the indicator is above the threshold, investors could attempt to secure whatever gains they can before the price falls further.

Ethereum Active Addresses by Profitability.
Ethereum Active Addresses by Profitability. Source: IntoTheBlock

Thus, ETH may face the brunt of these investors’ selling.

ETH Price Prediction: Prepare for a Bounce Back

Ethereum’s price is moving within a falling wedge, a technical pattern known for signaling a bullish reversal. This places the potential target for the altcoin far above $4,000. But even in a bullish market, this is not going to happen.

However, the bullish cues could counter the aforementioned bearish cues by presenting ETH with a period of consolidation. The sideways movement would keep the altcoin restricted under $3,500 but also prevent a drawdown.

Read More: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum Price Analysis. Source: TradingView

But if Ethereum’s price does fail the bullish pattern, a drawdown could send it to $3,000 or lower. This would invalidate any potential of a rally, extending investors’ losses.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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