Is ETH Price Of $4,000 Target at Risk as Whales Unload Millions in Ethereum Holdings?

In the last few weeks, Ethereum whales have been increasing their selling pressure, which caused some concern about the future of ETH price rally.

Some of the biggest sales have been made by Ethereum co-founder Jeffrey Wilcke who has sold 20 000 ETH, which amounts to $72.5 million, to the Kraken exchange during the current rally.

This is the fourth time Wilcke is selling Ethereum in the year 2024 and has offloaded a total of 44,300 ETH at an average price of $3,342 per token. The sales stand at about $148 million

– Advertisement –

Other whales have also followed the liquidation trend. Winslow Strong, a director of the Qualia Research Institute, recently moved 9,380 ETH for $33.7 million to Coinbase.

In the last month, Strong has collectively sold 14,233 ETH, which is equivalent to $48.8 million. This has raised questions on whether Ethereum’s anticipated rally to $4,000 may be hampered by this surge in whale movement.

ETH Price Resistance at $3,700: A Crucial Test

Eth price is currently under pressure at the $3,700 level, which is proving to be a tough barrier. According to analysts, the level must be broken with a strong weekly close for the rally to continue towards $4,000.

– Advertisement –

Crypto analyst Rekt Capital described the ETH price action at this level as a “picture perfect rejection”. This suggests that a sustained breakout has not occurred yet.

Source: Recht Capital

This resistance corresponds to the observations in the ETH/BTC pair which is another crucial level being touched. Crypto analyst CrediBULL has marked a ‘trouble area’ on the chart, where a rejection could cause price retracement.

Such a scenario could force Eth price into a buy zone between $2,700 and $2,800. This dip presents a buying opportunity for those with long-term investment strategies, but it poses a problem for traders trying to profit from the current uptrend.

Whale Activity and Market Sentiment

This increase in whale offloading is happening at a time when there is strong bullish sentiment in the futures market. Funding rates for Ethereum have been on the rise, which indicates that traders are optimistic.

The differences between whale selling and market sentiment in whales’ Ethereum sells make the market dynamics rather contradictory for investors.

Ethereum’s co-founders have been very active in the market dynamics as well. Wilcke’s transfer to Kraken comes after he made other sales this year.

Moreover, Ethereum’s other co-founder, Vitalik Buterin, has been selling meme coins recently. These sales have occurred during periods of price fluctuations, implying that co-founder actions can shape short-term market trends.

At press time, Ethereum is trading at $3,571.18, which is a 7% increase for the week. It fell slightly after hitting $3700 during the testing phase. The market capitalization of the cryptocurrency is $430 billion with a total circulating supply of 120.44m ETH.

The trading volume continues to be high with $28.47 billion traded in the past one day. However, liquidations have increased, with $32 million, $19 million of which are long positions. Experts have observed that this heightened activity may well push further volatility over the coming days.