Will Ethereum Price Fail $3,000 Breakout as Whale Selling Prolongs?

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As a seasoned researcher with over a decade of experience in the crypto market, I’ve seen enough bear runs and bull rallies to know that every dip is not always the end of the world. However, the current whale selling activity surrounding Ethereum has me slightly worried.

The crypto market entered November on a slightly bearish note as Bitcoin plunged below $70,000. Some analysts believe this downturn is a temporary selling pressure ahead of the U.S. presidential election. However, ongoing ETH whale selling casts doubt on Ethereum price recovery, raising concerns about a potential failure to break through the $3,000 level.

Right now, Ethereum (ETH) is being traded at approximately $2,459, marking a decrease of 1.38% in its value for the day. As reported by CoinGecko, Ethereum’s current market capitalization stands at an impressive $297.4 billion, and over the past 24 hours, its trading volume has amounted to around $12.34 billion.

Will Whale Selling Prevent Ethereum Price from $3,000 Breakout?

Based on information from EmberCN’s analysis, a significant Ethereum investor who withdrew nearly 96,639 ETH from Coinbase at around $1,567 in September 2022 reappeared after a 40-day absence. Just today, this substantial holder moved approximately 15,000 ETH (worth roughly $36.7 million) to the cryptocurrency exchange Kraken.

For approximately eight months now, the linked wallet has moved a grand total of 85,000 Ether (approximately $251.04 million) to Kraken. This transaction has resulted in potential profits of around $117.81 million. However, it’s worth noting that the owner of this wallet still retains 11,638.9 Ether, equivalent to roughly $28.55 million. This suggests a possible intention for further sales, implying potential risk.

Will Ethereum Price Fail $3,000 Breakout as Whale Selling Prolongs?

Additionally, a Cosmos Network wallet with the address 0xE8…57d3 sent over 3,500 Ether, equivalent to approximately $8.72 million, to Coinbase Prime at 0:50 UTC+8 today. As per Arkham intelligence findings, this wallet currently retains a significant amount of 20,087 Ethers, valued around $49.85 million, which it received from its ICO allocation back in 2017.

As an analyst, I’ve observed a pattern where significant whale or institutional sell-offs tend to align with market peaks. These sell-offs can signal the beginning of a new corrective trendline. Applying this insight to Ethereum, the increased selling pressure might suggest that the recovery momentum could slow down and the Ethereum price may find it challenging to surpass the $3,000 level.

ETH Chart Signals Potential 12% Drop Before Major Support Retest

For the last three months, the estimated value of Ethereum has been moving horizontally, confined mostly within the range of $2800 to $2150. The daily graph, depicting price fluctuations on both sides, suggests a lack of decisiveness among buyers and sellers.

Over the past four days, the value of Ethereum (ETH) has decreased from $2,722 to $2,470 due to market instability and oversupply, representing a 9.1% drop. If major investors keep selling, ETH could potentially drop an additional 12%, reaching a support level around $2,150.

An alignment of bearish tendencies among significant daily Exponential Moving Averages (EMAs at 20, 30, 100, and 200) suggests a potential extended adjustment or downturn in progress.

Will Ethereum Price Fail $3,000 Breakout as Whale Selling Prolongs?

Contrarily, if the upcoming U.S. election sparks renewed optimism in the crypto market, Ethereum’s price may bounce back from around $2400. This significant level aligning with a long-awaited support trendline could potentially push Ethereum’s value to surpass the resistance barrier at $2,800.

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2024-11-03 15:21