Ethereum ICO Whale Dumps Another 6K ETH, Is Price Correction Ahead?

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As a seasoned analyst with over two decades of experience in the crypto market, I’ve witnessed numerous ups and downs, whales coming and going, and trends that seemed unpredictable at first glance but eventually made perfect sense. The recent Ethereum ICO move has raised some eyebrows, and it’s clear that the whale is cashing out, which could potentially impact ETH‘s price trend.

Over the last week, Ethereum‘s value has faced challenges and dipped by over 12% today. Yet, there was a temporary surge, with the price bottoming out at $2,312.58 in one day before rising again to $2,438 – an increase of 5% from the intraday low. This upward trend occurred following reports that a major Ethereum ICO investor, often called a “whale,” has sold additional shares of their holdings.

Ethereum ICO Whale Sells 6,000 ETH

As per information from blockchain research company LookOnChain, a mysterious investor involved in the Ethereum Initial Coin Offering (ICO) has just disposed of around 6,000 Ether, worth approximately $14.11 million. This sale is part of a larger selling trend initiated by this whale who has been offloading ETH valued at about $101 million since September 22, with an average price per Ether of roughly $2,525.

Despite the fact that this whale still holds approximately 99,500 Ether (ETH), which equates to around $238 million according to current ETH prices, large-scale sales have sparked worries among investors about potential future price adjustments. The actions of this whale suggest either a warning signal or a carefully thought-out strategy to safeguard substantial profits, should the market be taken over by bears (downward trending sellers).

The #Ethereum ICO participant keeps selling $ETH!
45 minutes back, he offloaded another 6,000 Ether for approximately $14.11 million, and since September 22, he has successfully sold 40,000 Ether worth around $101 million at an average price of about $2,525 per Ether!
He still holds 99.5K $ETH($238M).
— Lookonchain (@lookonchain) October 4, 2024

 

In broader cryptocurrency markets, the number of Ethereum (ETH) in circulation has been gradually rising, particularly as a result of recent modifications in its monetary policy. As highlighted by crypto analyst Benjamin Cowen on Twitter, since April 2024, Ethereum’s supply has been growing by approximately 60,000 ETH per month. If this trend persists, the total supply could return to its pre-merge amounts by the year’s end.

Cowen suggested that the Federal Reserve’s latest interest rate reductions have sparked increased demand, but a more pronounced reduction of at least 100 basis points might be required to significantly influence the direction of Ethereum’s price pattern, mirroring the trend observed during Ethereum’s Initial Coin Offering (ICO) phase.

Benjamin Cowen pointed out that there have been comparable market shifts before, notably in 2016 and 2019, with Ethereum’s value dropping significantly during Q4 of those years. Based on his analysis, the ETH/BTC price may follow a similar pattern and potentially experience another steep decrease, echoing past trends.

Declining Investor Confidence in ETH

As a crypto investor, I’ve noticed a shift in the vibe towards ETH lately. The trading volumes have dwindled, and ETF inflows seem to be slowing down. Over the past week, the derivative trading volume for Ethereum has dropped by nearly a third, now standing at around $21.94 billion. This significant decrease suggests that enthusiasm might be on the decline, potentially leading to less liquidity in the market. This could hint at a bearish trend or a period of consolidation, as suggested by the recent movement of Ethereum ICOs.

Furthermore, there was a slight increase of 2.80% in the number of investors showing interest in Ethereum derivatives, amounting to $11.58 billion. This trend, characterized by lower trading volumes but higher open interest, could suggest that some market participants are maintaining their positions in preparation for potential price fluctuations – whether they anticipate increases or decreases – in the forthcoming months.

Potential ETH Price Recovery with Strong Support Levels

As a crypto investor, I’ve noticed that the Ethereum ICO shift has brought about some interesting technical analysis. The recent drop in ETH price appears to have pushed it into a vital support area, roughly between $2,440 and $2,252. If the ETH price successfully ends the day above the midpoint of this range at approximately $2,340, it might indicate a potential stabilization point, hinting at the possibility of an upturn.

According to market analysts, breaking through the $2,564 barrier might initiate a possible upward trend that could reach the significant $3,000 milestone and potentially extend to $3,500, contingent upon the overall state of the wider market.

To make this event happen, Bitcoin‘s behavior will be crucial. If Bitcoin maintains a relatively steady price within the $61,000 to $62,000 zone, it could provide a strong foundation for Ethereum and other cryptocurrencies. This stability might increase investor confidence in these altcoins.

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2024-10-04 21:38