Ethereum (ETH) Whales Dump $224 Million Worth of Tokens, Raising Concerns About Price Stability

The crypto market is currently buzzing with excitement, powered by a parabolic Bitcoin surge that has seen the broader asset class come to life

Crypto Market Surges, but Ethereum Lags Behind with Modest Gains

The crypto market is abuzz with excitement as Bitcoin's parabolic rally continues to breathe life into the broader asset class. However, Ethereum (ETH), the second largest crypto asset, has been slow in joining the rally, posting only modest gains that barely align with its market position.

While investors remain hopeful for a turnaround, recent whale action threatens price stability.

Ethereum Whale Dumps

It is not uncommon for long-dormant whales to resurface during a market rally, and this time is no different with Ethereum.

A wallet last touched eight years ago, holding 398,889 $ETH valued at approximately $1.34 billion, was recently reactivated to offload a significant portion of its holdings.

A whale that accumulated 398,889 $ETH(currently worth $1.34B) at an average price of ~$6 is selling $ETH again!

This whale accumulated 398,889 $ETH(then worth $2.4M) between Jan 18 and Mar 10, 2016, at an average cost of ~$6 per $ETH.

After remaining dormant for over 8 years,… pic.twitter.com/9rfw1IrdRt

The sales began on November 7, 2024, and so far, a total of 73,356 ETH, worth $224.42 million, has been sold, leaving a balance of 325,533 ETH, worth $1.1 billion. Notably, the wallet's assets were accumulated between January 18 and March 10, 2016, at an average price of $6 per ETH, with a total investment of just $2.4 million.

While portfolio shuffles are not uncommon in the crypto market, the size of the sale raises concerns about potential downward pressure on an already struggling token. Nevertheless, analysts remain optimistic about Ethereum's future performance.

Ethereum to Hit $3,700?

Market analyst Rekt Capital suggests that Ethereum (ETH) is on the verge of breaking out from a short-term Bull Flag pattern. Typically, this technical setup signals continued upward momentum, sparking optimism for a bullish outlook.

The analyst further noted that a confirmed breakout could propel ETH toward the $3,700 resistance level, which would mark one of its most significant price increases seen in recent months.

$ETH Ethereum is currently breaking out from its short-term Bull Flag

Confirmed breakout would see ETHласти the ~$3700 resistance above#ETH #Crypto #Ethereum pic.twitter.com/iBbUeYxmnM

Adding to the optimism, Ethereum has shown modest progress this week, gaining 7% over the past seven days. While the token has experienced some fluctuations, such as its 2.4% decline in the last 24 hours, it maintains a broader positive trend, trading at $3,279 at the time of writing.

On the Flipside

Why This Matters

Major asset sales often threaten price stability, and given Ethereum's current fragility, whale actions like these are especially noteworthy.

Find out more about Ethereum's performance in recent weeks here:

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