Ethereum Whales Dump With Major Losses, ETH Price Drop Ahead?

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Large Ethereum holders have persisted in offloading their ETH, as the ETH price struggles to surpass $3,500 and establish the next phase of its upward trend. Meanwhile, investors are adopting a wait-and-see approach, given that the ETH supply is approaching pre-Ethereum Merge levels. Similarly, alongside Bitcoin, Ethereum shows signs of vulnerability, hinting at potential price decreases in the near future.

Ethereum Whale Books Over $1 Million Loss

Notably, some large Ethereum investors have started selling their Ether holdings at a financial disadvantage. Approximately nine hours ago, three wallets (possibly managed by the same party) offloaded 10,070 ETH for around 33 million DAI. The average price per ETH was approximately $3,280, resulting in a loss of about $1 million.

According to information from LookOnChain’s blockchain data, a significant investor (referred to as a ‘whale’) removed approximately 24,029 ETH, equivalent to around $81.3 million at the time, from Binance three weeks ago by using ten newly established wallets. Interestingly, current data shows that this whale still holds about 13,959 ETH, which translates to roughly $45.48 million, spread across these wallets.

In the last 13 hours, Justin Sun, founder of Tron, has deposited approximately $320.4 million in Ethereum to the crypto exchange HTX. Data from Spot On Chain shows that since November 10, 2024, Sun has deposited a total of 323,591 ETH worth around $1.124 billion to HTX. This means he’s been averaging roughly $3,472 per deposit. Most of these Ethereum were accumulated during the first half of 2024 at an average price of $3,036.

ETH Supply Reaches Pre-Merge Levels

According to renowned cryptocurrency analyst Benjamin Cowen, it’s anticipated that Ethereum’s total supply could soon return to its previous state within a few weeks. At present, approximately 45,000 Ether is being added to the supply each month, with just around 32,000 Ether remaining until we reach the pre-merge levels.

After interest rates were lowered, there was a brief increase in the demand for ETH, but since then, it has stayed relatively low. Consequently, Ethereum’s supply has been expanding (inflationary) over the past 10 months, contrary to the deflationary trends that were expected to occur post-merge.

ETH Price Action Moving Ahead?

right now, the cost of Ethereum is being influenced by downward forces, decreasing by 2.6% over the past day. At present, it’s trading at $3,186.04 and has a market cap of $383 billion. As per well-known crypto analyst Ali Martinez, the significant resistance level for Ethereum (ETH) lies between $3,360 and $3,450.

On the downside, important price points for ETH that could act as a guide for traders in the market have been marked at around $3,066 and $3,160.

In contrast to the substantial selling of Ethereum by whales, crypto market experts remain optimistic about Ethereum’s trajectory up until 2025. Notably, well-known crypto analyst Altcoin Sherpa posits that the ETH price could be following a common market cycle pattern. This analyst underscores three significant phases:

  • Red Zone: Indicates liquidations.
  • Yellow Zone: This represents a sharp “V-shaped” recovery, though it ultimately results in a lower high on lower timeframes (LTF).
  • Yellow Circle: Marks a retest of previous lows, followed by a potential upward trend.

Experts are anticipating that Ethereum might exceed $10,000 by the middle of 2025. For this to happen, there needs to be an increase in optimistic feelings towards it, accompanied by fewer sell-offs from large Ethereum holders.

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2025-01-13 10:59