Whales are not waiting for correction and are acting in advance
An Ethereum whale deposited 23,080 ETH, worth approximately $44 million, into Binance just 20 minutes after the cryptocurrency’s price rose above $1,904. This action suggests that major holders are starting to take profits amid Ethereum’s recent surge.
The whale’s average withdrawal price for Ethereum stands at around $1,820. This is well below the latest peak price, suggesting a conservative approach to risk management and a preference for locking in profits during periods of price strength.
— Lookonchain (@lookonchain) May 29, 2023
Interestingly, the whale has been systematically reducing its holdings in Ethereum, making significant transfers of approximately 8,000 ETH each time the cryptocurrency experiences upward price movement. This pattern indicates a strategic move by the whale to gradually liquidate a portion of its holdings while minimizing potential market impact and volatility.
Despite this sizable withdrawal, Ethereum’s market performance has remained resilient, with the price of Ethereum holding above the crucial $1,900 threshold. This suggests that the broader market sentiment remains bullish and is not significantly swayed by the actions of individual whales.
However, the whale’s activity does signal an interesting trend. Major holders, known as whales, typically have significant influence over cryptocurrency prices due to the substantial size of their trades. The decision to sell or reduce their holdings can often lead to significant market movements. In this instance, the whale’s gradual sell-off may indicate a belief that Ethereum has peaked, or at least that a significant downturn is more likely than a continued upward trajectory.
The question remains as to whether this behavior is a sign of a larger market trend among Ethereum whales. At press time, no major spike in exchange deposits has been recorded, suggesting that the behavior of this whale is not creating a market-wide trend.