Will Ethereum Price Dip Below $2,000 Again Due to Whale Sell-Offs?

Ethereum's price has recently surged past $2,100, despite notable fluctuations in the overall market, fueled by significant whale accumulation and a diminishing supply. However, the latest reports indicate that these whales are now beginning to sell their ETH, likely capitalizing on the price increase. The critical question now is whether this uptick in selling may lead to a decrease in Ethereum's value, potentially pushing it back beneath the $2,000 mark.

Key Takeaways

Ethereum has recently risen above $2,100 due to whale accumulation.
Whales are now starting to sell ETH, raising concerns about potential price drops.
Significant transactions indicate that some whales are cashing in after holding ETH since its ICO.
Ongoing whale sell-offs may impact Ethereum's stability, possibly driving prices below $2,000 again.
Recent market activity shows Ethereum's price has fallen by more than 5% in the past week.

Whale Activity: Selling Pressure on Ethereum

Following substantial accumulation only a week ago, crypto whales are now offloading ETH. An on-chain researcher known as ‘The DataNerd’ has released a report on X showing that a long-dormant Ethereum whale recently moved an astonishing 15,000 ETH, worth about $30.97 million, to the Coinbase exchange.

Ethereum
Source: Chart from The DataNerd on X

The timing and scale of this transfer, highlighted by Arkham Intelligence, suggest that the dormant whale might be looking to liquidate or swap their ETH. Interestingly, this whale participated in Ethereum's initial coin offering (ICO), meaning they acquired ETH at its launch for an exceptionally low price.

DCA Strategy and Current Holdings

According to the report, the whale used a dollar-cost averaging (DCA) approach to purchase 17,400 ETH at an average cost of around $11.6 each on Poloniex. After transferring some ETH to Coinbase, this whale still retains 14,800 ETH in their wallet, valued at approximately $30.5 million, indicating that they have not yet liquidated most of their assets.

Another recent significant sell-off was noted by the blockchain analytics platform Lookonchain. They reported that an account known as “EthereumOG” with the wallet address 0xa2F6 sold 15,002 ETH on March 23, worth roughly $30.97 million. This whale had previously acquired 172,700 ETH for $12.83 each about ten years ago, resulting in an original investment of $2.2 million. Currently, that investment has skyrocketed by more than 16,082%, reaching nearly $356 million.

Implications of Selling Pressure on Ethereum's Price

The recent surge in whale selling activity may have notable consequences for Ethereum's price. When large holders of ICO ETH move their assets to exchanges, it often signals an intention to sell. Such large deposit actions can create substantial selling pressure in the market, prompting other traders who observe these transactions to react by selling or modifying their positions.

This reaction can create a chain reaction that exerts downward pressure on Ethereum's price. The impact is more pronounced when the whales involved are both larger and more seasoned, amplifying price volatility. With Ethereum trading around $2,100, ongoing whale sell-offs could potentially drive its price lower, possibly falling below the $2,000 threshold. The price has already decreased by more than 5% over the past week, as reported by CMC data, suggesting a bearish trend may be emerging.

Ethereum
ETH trading at $2,184 on the 1D chart | Source: ETHUSDT on Tradingview.com