Whispers In The Deep: Why Are Ethereum Whales Disappearing?
May 07 2024 - 5:00AM
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Ethereum (ETH), the world’s second-largest cryptocurrency,
continues to grapple with uncertainty after a steep price decline.
Investors are on tenterhooks, with whales exiting their positions
and the market sentiment teetering between fear and a glimmer of
hope. Related Reading: 900 Million Telegram Users Send TON Token
Soaring 15% – Details Ethereum Price Struggles To Regain Footing
Ethereum’s price has been on a rollercoaster ride in recent months.
After reaching new highs in late 2021, the cryptocurrency plunged
dramatically, leaving investors reeling. The recovery has been
slow, with Ethereum currently hovering around $3,077 – a far cry
from its peak. Source: Coingecko This lackluster performance is
causing anxiety among investors, particularly large holders known
as whales. Recent data from Lookonchain paints a concerning
picture: a whale who bought ETH a year ago is cashing out,
pocketing a cool $16 million in profit. This whale’s actions
highlight a potential exodus of major investors, which could
further depress the price. Fear Grips Ethereum Whales WhaleStats, a
platform that tracks large cryptocurrency holders, reveals that
Ethereum whales are experiencing extreme fear. The BSC Chain
Ethereum Whales’ Fear and Greed Index, a measure of investor
sentiment, is currently in the “extreme fear” zone. This suggests
that whales are hesitant to make any significant moves, waiting for
the market to stabilize before deploying their capital. Source:
WhaleStats While Ethereum remains the most popular token among
whales, their apprehension is palpable. They are closely monitoring
market movements, waiting for a clear signal before taking the
plunge. Divided Opinions On Ether’s Future The future of Ethereum
remains a subject of debate among crypto analysts. Ashcrypto, a
prominent analyst, believes in a potential rebound in the third
quarter of this year. Based on historical patterns from 2020 and
2021, Ashcrypto predicts a price surge towards $4,000. ETHEREUM
PRICE UPDATE – Similar fractal as of Q4 of 2020 – Breakout could
happen in Q3 of 2024 as per historical pattern Once it breaks out,
the 100x altseason will begin with ETH leading its way towards
$15,000. pic.twitter.com/F1Zr6mQeHB — Ash Crypto (@Ashcryptoreal)
May 6, 2024 Data from IntoTheBlock reveals a strong correlation
between Ethereum’s price and large transaction volume. The recent
drop in large transactions coincides with the price decline,
suggesting that whales play a critical role in influencing
Ethereum’s trajectory. Total crypto market cap currently at $2.28
trillion. Chart: TradingView ETH Price Action At A Glance
Meanwhile, with its next target of $3,090, Ether is expected to
continue its correcting bearish trend, demonstrating further
bearish bias when it settles below $3,120 once more. If the price
breaks $3,100, it will halt the projected slide and try to reclaim
the main positive trend. A move below the EMA50 would support the
continuation of the recommended negative wave. Related Reading: Is
Avalanche About To Blow? Don’t Miss This Potential Breakout –
Analyst Is Ethereum Headed For A Revival? The answer remains
unclear. While some analysts predict a resurgence, the ongoing
whale selling and fearful market sentiment pose significant
challenges. The coming months will be crucial for Ethereum, as it
navigates a volatile market and attempts to regain investor
confidence. Featured image from Hakai Magazine, chart from
TradingView
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