Key Points
- An ETH whale has sold 15,000 Ethereum, causing concern among investors.
- Despite this, there are indicators that a bullish reversal could be imminent for Ethereum.
A significant investor recently sold 15,000 Ethereum (ETH) in response to current market trends.
This move has led some to speculate about a potential reversal for ETH.
Ethereum’s Recent Performance
Over the past week, Ethereum experienced a surge of over 14%, with its price reaching $2,641. The next target is set at $2,769. Meanwhile, Bitcoin (BTC) bulls are striving to maintain a position above $62K.
When BTC encounters resistance at critical points, it often signifies a growing interest in alternative cryptocurrencies.
However, the recent sale of 15,000 ETH by a so-called “diamond hand” whale has raised concerns among investors.
Impact on the Market
The group of Ethereum whales holding between 100 and 1,000 ETH has been steadily decreasing since its peak in early 2021. Despite this, the majority remain confident in future gains.
An anonymous whale recently sold ETH worth $38.4 million, transferring it to the Kraken exchange. This investor is known as a “diamond hand”, meaning they typically hold onto their coins for extended periods without selling.
This significant sale could incite fear among other stakeholders. If this trend continues, it could drive the price of ETH below $2,600.
At present, Ethereum bulls are working to defend the $2.6K support against selling pressure. If this level is retested, a bearish pullback could follow.
In such a scenario, around 4 million addresses holding $8 million worth of ETH would move into a loss position.
Future Predictions
While the whale’s selling strategy has temporarily hindered a direct breakout opportunity, investors are positioning for a potential bullish reversal.
A rise in net outflows suggests a possible correction, indicating that investors are trying to counteract selling pressure by accumulating more ETH.
If this trend continues, Ethereum could soon rise above $2.7K. However, it is crucial to remain vigilant about whale activity. If this increase proves to be short-lived, a drop to $2.2K could become increasingly likely.
