- Following a selloff of 40,000 ETH since September, a whale sold 6,000 ETH for $14.11 million, leaving $238 million retained.
- Ethereum’s supply has risen by 60,000 ETH monthly since April 2024, echoing trends that caused price plunges in 2016 and 2019.
- Despite reduced trading volumes, increased open interest signals some investors may be waiting for major price movements.
A participant in the Ethereum ICO has been selling substantial quantities of ETH, which has caused market anxiety. The whale sold six thousand Ethereum, worth $14.11 million. The participant has sold 40,000 ETH, or $101 million, since September 22. This transaction fits into a larger pattern. Each sale averaged a price of $2,525 per ETH. Despite these sales, the whale still holds 99,500 ETH, equivalent to $238 million, fueling speculation about further price corrections.
Whale Selling Raises Investor Concerns
Moreover, this ETH selloff has sparked fear among investors, especially with concerns about future market corrections. The whale’s activity is seen as a potential sign of caution or a strategy to protect profits if the bears take control. Besides, the ongoing sales align with Ethereum’s circulating supply increase, adding to the uncertainty.
Ethereum’s supply has been rising by 60,000 ETH per month since April 2024, as noted by analyst Benjamin Cowen. If this trend continues, supply levels could reach pre-merge figures by year’s end.
Broader Market Implications and Analyst Insights
Additionally, Cowen observed that Ethereum’s supply changes echo past market downturns, particularly in 2016 and 2019, when ETH prices plunged. As such, investors are closely monitoring whether the ETH/BTC pair will see another sharp decline. Recent Federal Reserve rate cuts have increased demand, but Cowen suggests a more aggressive cut is needed to sustain a bullish shift.
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Investor sentiment toward Ethereum has also weakened. Over the last week, derivative trading volumes fell by 34.97%, amounting to $21.94 billion. Open interest increased by 2.80%, showing that investors may be waiting on positions for future price changes.
Vitalik Buterin recommended reducing the 32 ETH minimum staking requirement to 16 ETH. His suggestion comes as a response to current market challenges, aiming to boost participation in the network. The whale’s ongoing selling binge, meanwhile, is still concerning as it suggests possible price instability in the upcoming months.
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