Ethereum Price Surge to $4,000 Delayed After ETH Whale Dump?

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As a seasoned crypto investor who has navigated through multiple market cycles, I find myself at the crossroads when it comes to Ethereum. On one hand, the price action above $3,500 is undeniably impressive, but the recent wave of ETH offloading by whales, including Ethereum co-founder Jeffrey Wilcke, has me a bit concerned.

As Ethereum‘s price surpasses the $3,500 mark and demonstrates resilience, Ethereum whales have started selling again, causing concern among investors about potential profit-taking before reaching $4,000. It’s worth mentioning that one of Ethereum’s co-founders, Jeffrey Wilcke, sold a significant amount of ETH, approximately 20,000 ETH valued at around $72.5 million.

Ethereum Price Breakout to $4000 Faces Headwinds

According to well-known crypto expert Rekt Capital, Ethereum is currently making an effort to surpass the significant resistance at around $3,700. For a sustained upward trend towards $4,000 and beyond, it’s crucial that Ethereum manages a robust weekly close above this level, signifying a successful breakout.

According to Rekt Capital’s analysis, the latest movement in Ethereum’s price has been likened to a “textbook example of being turned down” at the resistance level. Essentially, they are suggesting that Ethereum isn’t quite prepared for a breakthrough at this time.

A well-known analyst called CrediBULL Crypto has highlighted an essential resistance level in the ETH/BTC combination. As the trend is currently on the rise, this pair is edging close to its initial “challenging spot”. The analyst proposes that if there’s a rejection at this stage and Bitcoin experiences a possible 10% decline, it could drive Ethereum’s price towards a substantial buying opportunity zone ranging from $2,700 to $2,800.

Instead of holding on long-term during this temporary market turbulence, CrediBULL advises traders to pay close attention to the price range between $2,700 and $2,800 for possible entry points that could yield profitable trades.

A piece of good news that offers some hope is the increase in the funding rates for ETH. Funding rates, which serve as a vital gauge of sentiment in the futures market, have experienced a significant surge in the past few weeks. This upswing suggests an escalating bullish trend among traders and investors, reflecting their growing optimism about Ethereum’s price, which is steadily moving upward.

ETH Whale Dumping on the Rise

Today, Jeffrey Wilcke, one of the co-founders of Ethereum, gained attention as he moved 20,000 ETH, worth approximately $72.5 million, to Kraken exchange. This action occurred during a surge in Ethereum’s price surpassing $3,500.

In the year 2024, Ethereum’s co-creator has executed his fourth significant ETH transfer this year, amounting to 44,300 Ether tokens. This corresponds to around $148 million in value, with each token being sold at an average price of approximately $3,342. Conversely, Ethereum co-founder Vitalik Buterin has recently been disposing of meme coins.

Additionally, according to Spot on Chain, it was announced that Winslow Strong, head of the Qualia Research Institute, recently moved 9,380 Ethereum, equivalent to approximately $33.7 million, to Coinbase within the past two hours.

This action aligns with a wider pattern of asset disposal by Strong, who has offloaded a sum of 14,233 ETH, equivalent to approximately $48.8 million, since the price of Ethereum started rebounding in early November.

At the moment of this report, Ethereum (ETH) is currently being traded at a decrease of 1.27%, amounting to roughly $3,570. The daily trading volume has significantly decreased by 32% and now stands below $30 billion. According to Coinglass data, the liquidation over the last 24 hours has escalated to $32 million, with $19 million attributed to long positions and $13 million associated with short positions.

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2024-11-29 11:53