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Your email address will not be published.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

What Is Cosmos Atom Information About Atom Token

Altcoin | Editor Choice | News | Research

What is Cosmos ATOM? Information about ATOM Token

What is Cosmos (ATOM)? Learn about the operating mechanism and outstanding features of Cosmos along with detailed information about the tokenomics of ATOM Token!

Important Update About Dogs Airdrop On Telegram

Airdrops | Editor Choice | News

Important Update about Dogs Airdrop on Telegram

DOGS on Telegram has announced important updates about their DOGS token distribution plan and the addition of a new "check-in" feature.

Azcnews Binance Delists Multiple Trading Pairs On Platform

News | Editor Choice | Policy & Regulations

Binance Delists Multiple Trading Pairs on Platform

Binance will delist specific spot trading pairs on July 26, 2024. The AVAX/TUSD, MATIC/TUSD, and VOXEL/BTC pairs will no longer be available for trading.

Altlayer Moves Up Alt Token Unlock Schedule, Mimicking Worldcoin

News | Altcoin | Editor Choice

AltLayer Moves Up ALT Token Unlock Schedule, Mimicking Worldcoin

The AltLayer (ALT) restaking solution has announced that they will move up the token unlock schedule to the present time.

Azcnews Large Inflows Into Ether Etfs On First Day Of Trading

News | Altcoin | Editor Choice

Large Inflows into Ether ETFs on First Day of Trading

Bloomberg ETF analyst Eric Balchunas described the $625 million trading volume, excluding Grayscale's ETHE, as "healthy" and anticipated that a "significant portion" of this amount would translate into inflows.