Ethereum whales are participating in significant sell-offs, according to recent on-chain statistics and trading activity, which raises questions about their long-term faith in the asset. One noteworthy transaction involves a whale who transferred 12,906 ETH ($24.39 million) from Binance to Lido after buying ETH for $1,890 last year.
This same investor most recently took 7,000 ETH out of Lido and put it back on Binance, where he made over $16 million in gains despite the market’s volatility.
The following data show a decrease in big transactions in conjunction with price fluctuations, pointing to a potential relationship between whale activity and price changes. In particular, there has been a discernible decline in the overall amount of big transactions, which corresponds with times of market volatility.
Whales’ profit-taking could be impacted by Ethereum’s comparatively poor performance in contrast to other top cryptocurrencies like XRP and Solana. Not much, but Ethereum’s slow progress in the rapidly changing cryptocurrency market may be forcing these major investors to reevaluate their holdings. These kinds of changes are important to keep an eye on since they may signal a change in investor mood and more substantial market shifts.
Furthermore, IntoTheBlock’s on-chain measurements demonstrate a strong relationship between the quantity of major transactions and Ethereum’s price. This link demonstrates the significant impact that these huge transaction volumes have on Ethereum’s price dynamics. The recent dip in transaction volume, particularly in April, is consistent with the decline in Ethereum’s price, indicating that whale pressure to sell is having an effect.
Although a single large sell does not portend Ethereum’s demise, it does raise some questions over the viability of its present movements.
