Key Points
- Ethereum’s supply on exchanges has increased by 5% since the Dencun upgrade.
- Whales have been shorting Ethereum, leading to a significant drop in its price.
Ethereum, the second-largest cryptocurrency, has been on a downward trend, with its value decreasing by 9% in the last 24 hours.
Following the activation of the Dencun Upgrade, Ethereum has consistently been in the red, with the weekly losses amounting to 18% at the time of writing.
Whale Activity and Market Reactions
There have been widespread market sell-offs, sparking concerns about a potential reversal in Ethereum’s bullish trend.
According to Spot On Chain, an on-chain data tracker, three whales have liquidated a total of 26,946 Ethereum in the past four days, resulting in nearly $40 million in profits.
One investor notably transferred 8,870 Ethereum to Binance on March 16th, when the price of Ethereum was $3,733. This sale yielded a total profit of over $25 million.
Further data analysis using Santiment revealed that Ethereum’s supply on exchanges has increased by 5% since the Dencun upgrade. Simultaneously, key whale wallets holding between 10,000–1 million coins have dropped significantly, indicating that whales are taking profits.
Shorting Ethereum
Matrixport, a crypto investment services company, recently suggested shorting Ethereum against Bitcoin longs, based on two main factors.
Firstly, with the Dencun upgrade executed, one of the major catalysts for Ethereum’s growth is now in the past. Secondly, the chances of spot Ethereum exchange-traded fund (ETF) approval are decreasing with each passing day.
These factors could have prompted whale investors to adopt a bearish stance on Ethereum. This is further evidenced by Hyblock Capital’s Whale vs. Retail Delta indicator, which shows that whales have significantly reduced their long exposure over the past week.
