Ethereum, the second-largest cryptocurrency by market cap, has been facing some turbulent times as of late. Whales holding large amounts of ETH have been offloading their holdings, causing concern among investors and traders about a potential price decline in the near future.
According to data from Lookonchain, one whale wallet address, 0x3e38, recently dumped 7,500 ETH worth $32.33 million into Binance. Despite this massive sell-off, the whale still held 7,702 ETH worth $33 million after withdrawing 15,202 ETH over the past few weeks. This indicates that the whale is selling off their ETH to take profits, especially as the price of ETH has been moving sideways.
In a similar fashion, another whale wallet address, 0xd8ef, deposited 3.25 million USDC into Hyperliquid and opened ETH short positions with 25x leverage. This whale positioned 3,000 ETH worth $12.98 million, with liquidation points set at $5,291.9. These moves by the whales have highlighted a weakening sentiment in the market.
As a result, ETH has slipped by 1.20% to $4,306 at press time. This decline has triggered a surge in trader and investor participation, with ETH’s 24-hour trading volume soaring by 11% compared to the previous day. The bearish whale activity coincided with ETH hovering near the base of a descending triangle on the four-hour chart, with no clear directional bias yet.
The 9-day EMA crossing below the 15-day EMA has flashed a bearish signal, indicating a potential downside momentum for ETH. If the price falls below the $4,260 level, ETH could decline further to below $4,000. However, if ETH manages to clear the descending trendline resistance and the hurdle at $4,415, a rally could be possible, with ETH soaring by 10% to reach the $4,865 level.
In conclusion, Ethereum is facing some challenges as whales continue to offload their holdings, but there is still potential for a breakout rally if bullish traders can overpower the resistance levels. It remains to be seen how the market will react in the coming days.