Ethereum Whales Dump ETH Amid $1,200 Price Crash Predictions
- Ethereum whales offload massive ETH ahead of predicted crash.
- World Liberty Financial liquidates ETH at a loss, faces a $125M hit.
- Analysts predict Ethereums price may stabilize at $1,200 support.
Ethereum whales are dumping their ETH holdings because of increased fears of potential Ethereum price crash. Ethereum whales have recently liquidated substantial amounts of Ethereum because of market uncertainties. The price of Ethereum could experience major fluctuations in the coming days because of massive sell-off by the Ethereum whales.
Price Crash Fear Triggers Ethereum Whale Capitulation
A long-term Ethereum investor deposited 2,000 ETH valued at $3.11 million. The investor maintained an inactive Ethereum account for more than 7 years. The investor purchased 10,001 ETH for $3.52 million in 2017 and held the ETH during the price peaks. The current unrealized profits for this whale stands at $12.3 million. However, The whales unrealized profit could have been $45 million during Ethereum price peaks which shows the risks and benefits of long-term crypto investments.
World Liberty Financial, a decentralized finance venture connected to Donald Trump, has started to sell its Ethereum assets. A severe price depreciation to $1,465 prompted the project to sell 5,471 ETH worth $8.01 million at a loss. World Liberty Financial initially purchased 67,498 ETH at an average price of $3,259 per token which resulted in a major unrealized loss of $125 millions. The projects Ethereum sale intensifies worries that big market participants are bracing for additional price drops.
Another Ethereum whale liquidated 10,000 ETH which they held for more than 900 days. The $15.7 million sale generated $2.75 million profit for the whale despite missing the peak at $4,000. The whale could have achieved over $27 million in profit if they had sold at the market peak. This shows risks of missing major price points in volatile markets when investors hold through major market fluctuations.
Lookonchain data shows another whale made financial losses when they sold 5,094 ETH to repay a debt. The whale borrowed $80.91 million USDT to purchase 26,235 ETH at $3,084 each. However,the Ethereum price drop has resulted in a $40 million loss for the whale. This shows the risks of leveraging investments in volatile cryptocurrency markets.
Ethereum Prices Stares At Potential Crash
The massive Ethereum whales liquidation could increase pressure on Ethereum prices. Analysts predict a potential price downfall with Ethereums current price at $1,578.87 after a 5.6% increase. The current price fluctuations indicate the price could fall deeper prompting a widespread market sell-off.
Crypto analyst Ali Martinez has identified $1,200 as the critical support level for Ethereum. Ethereum could potentially achieve stabilization at this price level and avoid additional drops. Another analyst, venturefounder, claims Ethereum may have reached or is approaching currently its lowest possible point. However, potential Federal Reserve rate cuts in May could increase liquidity and stimulate Ethereum price recovery.
Read more: https://www.tronweekly.com/ethereum-whales-capitulate-fears-price-crash/
Text source: TronWeekly
