Ethereum Whales: Swimming in Troubled Waters
In the vast and ever-changing world of cryptocurrency, Ethereum whales—big investors with a lot of Ethereum (ETH)—are having a tough time. Their expected profits have dropped to levels not seen in years, showing that Ethereum, the second-largest cryptocurrency by value, is at a crucial point[1][3]. This isn’t just because of the usual ups and downs of the market, but also because of broader economic and regulatory pressures.
The Drop in Expected Profits
Ethereum whales, especially those with 1,000 to 10,000 ETH, are now seeing their expected profits turn negative. This means they either bought ETH when it was more expensive in the past or held onto it through many price changes without selling for a profit[1][3]. Because of this, they might be more likely to cut their losses or reduce their investment if the market stays uncertain.
Market Mood Matters
The ETH/BTC ratio has been going down, and the market is full of fear, uncertainty, and doubt (FUD)[1]. This is made worse by things happening in the wider economy, like U.S. President Donald Trump’s trade policies and the Federal Reserve pausing interest rate hikes[1]. Ethereum’s price has dropped a lot, testing the important support level of $2,000[1].
Whale Activity and Market Pressure
A big Ethereum whale recently sold 40,000 ETH, worth about $89.9 million, over two days[3]. This sale, along with more ETH being sent to exchanges (over 60,000 in two weeks), shows that there’s growing pressure to sell[3]. Analysts say Ethereum’s current price behavior is like what happened in 2019 when the Federal Reserve was raising interest rates[3].
What the Charts Say
A pattern called “head and shoulders” has formed on the ETH/USD chart, which could mean the trend is about to change. If Ethereum goes below the $2,000 support level, it could fall further to $1,130[1]. The Relative Strength Index (RSI) is close to being oversold, but without a strong recovery, Ethereum’s price might keep falling[1].
Some Whales Are Buying More
Even though it’s hard, some whales are buying more ETH. The activity around Ethereum’s development has increased, which might mean some investors are feeling positive[4]. But overall, the market is cautious, and most whales aren’t likely to sell a lot to make a profit soon[4].
Ethereum’s Crucial Moment
Ethereum’s current situation is a crucial moment for investors. If it goes above $2,200, it might start to recover. But if it can’t stay above the $2,000 support level, it could fall even further[1]. As Ethereum whales navigate these tough times, their actions will greatly influence where the market goes next.
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Sources:
– Coinfomania
– Coingape
– Ambcrypto
– Blockchain.news