TL;DR
- After weeks of consistent accumulation, Ethereum whales have changed the tune and have offloaded massive quantities of the second-largest cryptocurrency.
- With the overall weak market sentiment as of late, the question now arises whether the asset will fall toward and below the crucial $4,000 support.
Whales Sell, Some Buy
Data shared by popular crypto analyst Ali Martinez shows that these large market participants have disposed of over 430,000 ETH in just the last two weeks, which is a stark contrast to their approach to Ethereum throughout most of July and August. From a USD perspective, this fortune is worth around $1.80 billion.
Recall that they accumulated almost the same amount just a few weeks ago, as ETH’s price had dipped from over $4,800 to under $4,100. Just a few days later, the cryptocurrency skyrocketed to a fresh all-time high of $4,950 before it corrected once again to $4,250 amid the current sell-off.
One particular whale, though, who has become known as a Bitcoin OG in the crypto community over the past few weeks, remains unfazed by the current market sentiment. They continue to swap BTC for ETH with another $109 million transaction completed earlier today. In total, the whale has purchased roughly $3.4 billion worth of ETH while disposing of massive BTC quantities.
Drop Below $4K?
Such massive sell-offs by whales could impact the underlying asset in a two-fold manner. First, they increase the immediate selling pressure. Second, their actions could be mimicked by smaller investors, which could have a snowball effect on the asset’s price movements.
As mentioned above, ETH dipped to $4,250 earlier today before it recovered some ground to regain $200. However, the danger still looms of a more profound correction that could push the asset to $4,000 for the first time since early August.
Martinez indicated that this is the most significant support line for ETH’s current market structure. If lost, though, the next stop would likely be $3,800.
