Key Points
- Long-term Ethereum holders sold $89.72 million worth of ETH, potentially signaling a price correction.
- Bitcoin’s new ATH of $75K led to a surge in the crypto market, pushing some altcoins to new highs.
The crypto market has seen a significant surge in the last two days, with Bitcoin (BTC) reaching a new all-time high of $75K. This rise has also driven some altcoins to new peaks.
Ethereum’s Three-Month High
In particular, Ethereum (ETH) has reached a three-month high, prompting many long-term and dormant whales to take profits.
SpotonChain recently reported that three ETH holders began selling after the recent price increases. Specifically, two holders sold 33,701 ETH valued at $89.72 million. This sell-off followed a 13.75% surge in Ethereum’s price.
Whale Activity and Market Impact
The first of these whales sent 25,000 ETH, worth $2,627 per token, to Kraken, retaining 64,450 ETH. Another whale, dormant for over eight years, sold 8,701 ETH for 24.05 USDC per token, leaving behind 2,304 ETH valued at $6.48 million and making a profit of $30.48 million.
Following these sell-offs, another Ethereum whale with 12,001 ETH worth $34.1 million ended an eight-year dormancy and began selling on-chain. This increased whale activity has raised fears of potential sell-offs that could push ETH prices towards correction.
Increased deposits into exchanges have been observed for ETH, which can lead to an increased supply and threaten price stability. For instance, Ethereum’s supply exchange ratio has spiked over the past week, suggesting investors are transferring their tokens into exchanges in preparation to sell.
Ethereum’s inflow volume has also surged over the last week from a low of 306,020k to 1.07 million, indicating that as ETH prices have recovered significantly, many investors are preparing to sell to maximize profits.
Despite these factors, ETH has seen a strong uptrend over the past week, trading at $2804 at the time of writing, marking an 8.11% rise in 24 hours and a 6.31% gain on weekly charts. This recent surge has pushed the altcoin to reach a 3-month high, signaling strong upward momentum.
If this momentum can be maintained, the altcoin could register further gains, potentially reaching the $3000 resistance level. However, if the recent whale sales significantly impact the market, Ethereum could see a market correction before attempting another uptrend. If this dump is reflected in price charts, Ethereum could decline to $2670.
