Ethereum Whales Withdrawal Triggers Major Price Decline

The supply of ETH on exchanges has surged by 5% following the implementation of Dencun. Concurrently, whales have been actively shorting ETH on these platforms.

Azcnews (1)

Ethereum (ETH) continues to lose ground, down 9% over the past 24 hours, extending its losing streak.

According to information from CoinMarketCap, the second largest cryptocurrency is still in the red since the activation of the Dencun Upgrade, with weekly losses of up to 18% as the press reports.

Whales are withdrawing

The emergence of market sell-offs has become more widespread, causing fears of a reversal of ETH’s bullish trend. According to data from Spot On Chain, three “whales” are said to have liquidated a total of 26,946 ETH in the past 4 days, raking in nearly $40 million in profits.

One notable development is that an investor transferred 8,870 ETH to Binance on March 16 at a price of $3,733 per coin. This sale brought that person more than 25 million USD in profits.

ETH supply on exchanges

Source: Santiment

Other data studies, using Santiment to gauge market reaction, show that ETH supply on exchanges has increased by 5% since the Dencun Upgrade was implemented. At the same time, the amount of ETH in important “whale” wallets, from 10,000 to 1 million, has decreased significantly.

The analysis of these two indicators shows that “whales” are withdrawing money from the market. This could be due to experienced investors taking profits when they no longer see positive potential in the asset.

Related: Ethereum Dips Below $4000 But Signals Remain Positive

This could be the reason

Ethereum whales short their positions

Source: Hyblock Capital

Cryptocurrency investment services company Matrixport recently proposed a strategy for shorting ETH versus buying Bitcoin (BTC). This proposal is based on two main factors.

First, the implementation of the Dencun Upgrade took away one of the most important factors driving ETH growth. Second, spot ETF approval rates are decreasing over time. This could increase concerns and prompt large investors to sell ETH.

The decline in “whales” is also further illustrated by Hyblock Capital’s Retail Whale vs Delta index, which shows a reduction in their long exposure over the past week.

5.0/5

(2 votes)
  1. Avatar of
    Anonymous

    Wonderful 😊

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Bingx Announces Listing Of Swarm Markets (smt)

Altcoin | Editor Choice

BingX Announces Listing of Swarm Markets (SMT)

BingX exchange announces the listing of Swarm Markets (SMT) - a DeFi platform licensed by the Germany's Federal Financial Supervisory Authority (BaFin).

Azcnews Nigeria Confirm

News | Editor Choice | Policy & Regulations

Central Bank of Nigeria Confirms Not Blocking Crypto Users

The Central Bank of Nigeria (CBN) has officially confirmed reports of their freezing of user accounts on platforms such as Bybit, OKX, Kucoin, and Binance as fraudulent.

Azcnews President Joe Biden Proposes Highest Tax Rate In History

News | Editor Choice | Policy & Regulations

President Joe Biden Proposes Highest Tax Rate in History

US President Joe Biden has just proposed increasing capital gains tax to 44.6%, marking the highest federal capital tax rate ever.

Bitcoin Dip 64500

News | Bitcoin | Editor Choice

Bitcoin Dips to $64,500, Yet Scarcity Remains High

Despite Bitcoin dipping slightly to $64,500 currently, most experts believe that prices will soon enter a bullish cycle.

What Is Gas Fee

Blockchain | Editor Choice | Research

What is Gas Fee? A Guide to Optimizing Gas Fees Effectively

In any blockchain environment, Gas fees play a crucial and nearly irreplaceable role. So, what is Gas fee? How can you optimize Gas fees? Let's find out!