Ethereum Whale Gains Despite ETH Price Challenges: What’s Next for the Market?

Ethereum (ETH) has recently experienced a massive selling activity from one of its largest holders, or “whales”. Since March 2024, this whale has strategically sold over 55,000 ETH, capitalizing on price spikes.

Despite these sell-offs, the whale still retains a substantial amount of Ethereum, while the broader market grapples with ongoing price volatility and selling pressure. 

The whale’s profit-booking strategy began with the purchase of 96,639 ETH from Coinbase during the crypto winter of September 2022, when ETH prices were much lower. This allowed the whale to profit significantly during subsequent price rallies. 

Ethereum’s price struggled to maintain upward momentum, repeatedly hitting resistance at the $2,600 level. The whale’s sell-offs have contributed to the selling pressure, which is further exacerbated by technical indicators like death crosses that signal potential bearish trends. According to trader Peter Brandt, Ethereum needs to break through the $3,050 resistance level to reverse its current downtrend.

Looking ahead, Ethereum’s market direction will depend on its ability to break past the $3,050 resistance level. A sustained move above this level could signal a bullish reversal, while failure to do so may result in further declines, especially if other large holders follow the whale’s lead in taking profits.

Meanwhile, Glassnode recently reported that Ethereum’s dominance has decreased from 16.8% to 15.2% since the FTX exchange collapse in November 2022. Dominance refers to the ratio of an asset’s market capitalization relative to the total market capitalization of all cryptocurrencies.

Despite Ethereum’s recent positive performance, the combined net flows for Ethereum ETFs were negative, with net outflows totaling $6.5 million. This marks the fourth consecutive trading day of outflows for ETH ETFs, in stark contrast to Bitcoin ETFs, which have seen four straight days of net inflows.