Ethereum Whales Offload Large Amounts at Loss as ETH Struggles to Break $3500
- Ethereum whales sold 10,070 ETH at a $1M loss, signaling growing market caution.
- Ethereums supply rises to 45K ETH monthly, nearing pre-merge supply levels.
- Ethereums ongoing upgrades and AI integration highlight its long-term potential.
Ethereum whales are selling off their holdings as ETH fails to stay above $3,500. The data from LookOnChain indicates that three wallets that possibly belong to the same whale made a major sale of 10,070 ETH for $33 million DAI at $3,280 per ETH. This movement led to a $1m loss, indicating low confidence among the big investors.
This whale has been identified as having withdrawn 24,029 ETH from Binance three weeks ago, which equals $81.3 million. These funds were divided into 10 new wallets. After this recent sell-off the whale still holds 13,959 ETH worth $45.48 million across these wallets.
Ethereum Supply Returns to Pre-Merge Levels
The Ethereum network has experienced some changes in supply, which is close to what it had before the Ethereum Merge. Crypto analyst Benjamin Cowen believes the rise of 45,000 ETH per month indicates that deflationary pressures are expected to kick in post-merge. Ethereums supply is only 32,000 ETH away from the pre-merge supply, adding to the markets woes.
The inflationary trend has been observed for the past ten months and has compounded investor nervousness. Demand has stayed low after a slight increase in the first half of 2024 due to interest rate cuts, which negatively affect ETH prices.
ETH Price Outlook and Market Analysis
Despite the sell-off, leading crypto analysts are still hopeful about Ethereums long-term prospects. According to Altcoin Sherpa, a popular market analyst, Ethereum is possibly going through a market cycle of liquidations, temporary bounce back, and a rise. Outlooks for ETH to trade through $10,000 before mid-2025 remain contingent on reduced sell-offs and improved market sentiment.
Ethereums price continues to struggle with resistance, falling 2.6% in the last 24 hours to $3,154.04. Market analysts have identified critical resistance zones between $3,360 and $3,450; support zones are $3,066 and $3,160. Traders wading through the current market uncertainties need these benchmarks to guide them.
Development and Future Prospects
In a separate development, Tron founder Justin Sun deposited $320.4m worth of ETH into crypto exchange HTX over the past 24 hours. As per data provided by Blockchain data provider Spot On Chain, Sun has deposited a total of 323,591 ETH, valued at $1.124 billion, to the exchange since November 24. These deposits were dumped at an average of $3,472 per ETH purchased earlier in 2024 at $3,036.
However, Ethereum has not lost its position and is still one of the most important elements of the blockchain industry. Ongoing developments, including Pectra and Fusaka, are intended to improve the protocols ease of use. The co-founder Vitalik Buterin has also pointed out that it can easily be integrated with other new technologies, such as artificial intelligence, thus making it quite attractive to investors who view it as a long-term investment.
Read more: https://www.tronweekly.com/ethereum-whales-offload-large-amounts-at-loss/
Text source: TronWeekly
