The second-largest cryptocurrency by market capitalization, Ethereum (ETH), recently had a significant price decline, falling from $1,940 to $1,847. Although a number of factors affect how volatile cryptocurrency values are, in this case it is thought that a major sell-off by a certain “whale” had a significant role in the collapse of Ethereum.
A person or organisation that possesses a significant quantity of a certain cryptocurrency is referred to as a “whale” in the cryptocurrency community. Such a person frequently causes significant price changes when they make large transactions. In one instance, an Ethereum whale carefully sent 25,000 ETH (worth around $47.24 million) to Binance, a well-known cryptocurrency trading platform, and 12 hours later, took out 15.9 million USDT.
This crypto behemoth, known for buying low and selling high, has kept up a flawless win rate for Ethereum trading over the previous few months. Although beneficial for the whale, this effective tactic has recently caused downward pressure on ETH’s price.
The whale then went on to withdraw another 16 million USDT just nine hours after the original transaction, significantly adding to Ethereum’s decline. According to analysts, this whale’s significant sell-off is primarily responsible for Ethereum’s price’s precipitous decline.
This powerful whale’s future trading activity might potentially add more selling pressure to Ethereum’s market value with over 8,000 ETH (about $14.7 million) yet to be traded. It is important to remember that a variety of variables, such as global economic trends, regulatory developments, and shifts in investor attitude, can have an impact on the crypto markets.
The power and impact whales have on the bitcoin market are highlighted by this latest incident. To avoid unanticipated sell-offs like this one, retail investors should constantly exercise caution and keep an eye on their enormous wallets.
