Ethereum’s (ETH) price recently experienced a 10% decline, with failed attempts to establish $2,700 as a support level. Despite these setbacks, the altcoin has managed to hover above the uptrend line for the past two months, a feat largely sustained by strategic whale activity.
With substantial assets at play, these high-value investors might hold the key to a potential reversal.
Ethereum Holders Panic
Ethereum recently experienced a notable rise in profit-taking, marking the highest level of realized profits in two months. This surge indicates that numerous ETH holders chose to cash in on previous gains, contributing to recent price fluctuations. The spike in selling activity coincides with a broader market decline, reflecting a defensive move by investors aiming to secure profits amid a downturn.
This trend could lead to a sharp decline in ETH’s value, heightening concerns and potentially sparking a panic-driven sell-off. Such increases in realized profits often suggest diminished short-term market confidence among investors.
Read more: How to Invest in Ethereum ETFs?
Ethereum Realized Profits. Source: Santiment
Amid the sell-off, whales are taking measures to counteract the drawdown. This group of high-value investors, particularly those holding between 10,000 and 100,000 ETH, recently accumulated over 360,000 ETH, valued at more than $880 million.
The accumulation efforts by whales highlight their strategic approach and bolster broader market sentiment. Their actions demonstrate a vote of confidence in Ethereum’s long-term potential, even as the price navigates through the current volatility. With whales capitalizing on lower prices, there is hope for more stable support levels, at least temporarily.
Ethereum Whale Accumulation. Source: Santiment
Ethereum Price Analysis. Source: TradingView
However, failure to breach $2,546 or a renewed wave of selling could jeopardize ETH’s position along the uptrend line. Losing this support could drive Ethereum’s price down to $2,344, invalidating any bullish-neutral outlook and ushering in a more cautious sentiment across the market.
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