An Ethereum whale recently made headlines by dumping its 10,000 ETH holdings after holding them for over 900 days, even through a bull market. This unexpected move suggests that it might be a good time to consider offloading the leading altcoin, with a potential further crash looming in the near future.
According to a post by on-chain analytics platform Lookonchain, the Ethereum whale in question finally capitulated and sold all of their 10,000 ETH for $15.71 million. The whale originally purchased the coins for $12.95 million at an average price of $1,295 on October 4 and November 14, 2022. Despite the ETH price surging past $4,000 at certain points in 2024, the whale held onto their investment until now.
The whale’s decision to dump their ETH holdings comes as the Ethereum price hovers below $1,500, approaching their average entry price of $1,295. By selling the coins, the investor made a profit of $2.75 million, although their unrealized profit at its peak was $27.6 million.
This particular Ethereum whale is not alone in their capitulation. In recent days, ETH whales have collectively dumped over 500,000 coins in just 48 hours. This mass sell-off is a result of Ethereum’s significant price decline, which is part of a broader crypto market crash triggered by Donald Trump’s tariffs.
The ongoing trade war between the US and China, exacerbated by Trump’s tariffs, has intensified investor concerns and raised the likelihood of a further Ethereum price crash. As a result, Ethereum whales are cutting their losses by selling off their holdings.
In a related development, World Liberty Financial (WLFI), another Ethereum whale possibly linked to Donald Trump, has also started capitulating. A wallet associated with WLFI sold 5,471 ETH for $8.01 million at a price of $1,465, signaling a loss for the whale. WLFI had previously purchased 67,498 ETH for $210 million at an average price of $3,259, resulting in an unrealized loss of $125 million due to the recent price decline.
Crypto analyst Ali Martinez predicts further downside for the Ethereum price in the short term, suggesting that Ethereum whales like WLFI could experience additional losses on their holdings. Martinez believes that $1,200 could be a key support level for Ethereum moving forward.
As of the time of writing, the Ethereum price is trading around $1,400, down over 8% in the last 24 hours. This downward trend indicates a challenging period for Ethereum investors and underscores the need for caution in the current market environment.
In conclusion, the recent actions of Ethereum whales, including the high-profile dump by the aforementioned whale, signal a turbulent period for the leading altcoin. Investors should closely monitor market developments and exercise caution in their trading decisions to navigate the current volatility successfully.