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- Ethereum Whales have continued to weigh strongly on the coin’s price with massive selloffs.
- ETH’s price lost crucial support recently, one that might see it drop to $2,300.
Onchain data analytical platform Lookonchain reveals whales have dumped huge amounts of Ethereum (ETH). However, the whales’ movement coincides with increased selling pressure in the broader market, partly attributed to Mt.Gox’s recent Bitcoin (BTC) distributions.
Ethereum Whales Makes Big Move
As disclosed by Lookonchain in an X post on Tuesday, two whales sold 8,208 ETH valued at $21.59 million at $2,630. Proceeds from the sales were used to repay debts on Aave to avoid liquidation.
2 whales sold 8,208 $ETH($21.59M) at $2,630 on-chain and repay debts on #Aave to avoid being liquidated.
Address:
0xbebcf4b70935f029697f39f66f4e5cea315128c3
0x1F244e040713B4139B4D98890Db0d2D7D6468de4 pic.twitter.com/6dx1LBqmxX— Lookonchain (@lookonchain) August 27, 2024
In a similar move, another whale deposited 5,145 ETH valued at $13.3 million into Binance with the likely intention of selling it. Notably, the whale first swapped 4,591.8 stETH for 4,589.5 ETH, incurring a loss of 2.3 ETH to bypass the lengthy withdrawal process.
Before this transaction, the same whale also deposited 19,000 ETH worth $49.7 million into Coinbase exchange for a potential sale. Institutional investors like AmberGroup and Cumberland also added to the recent Ethereum dump. While the former deposited 6,443 ETH to Binance and Kraken, the latter transferred 6,439 ETH to Binance.
Recent data revealed that in less than 48 hours, whales and institutions have sold off more than $143 million in Ethereum. These big ETH sell-offs triggered a breakdown of the rising wedge price pattern.
While whales are dumping, the Ethereum Foundation is also known to sell off the coin. Drawing on this, several crypto community members have accused Ethereum co-founder Vitalik Buterin and core developers of not believing in ETH as a store of value (SoV).
However, Buterin has denied these allegations, claiming that 90% of his net wealth is in ETH.
Will ETH Crash to $2,300?
The recent massive sell-off in ETH caused by the whale engagement has raised questions about whether Ethereum could crash to $2300. As of this writing, ETH was trading for $2,437, down by 9.3% in 24 hours.
Despite this selloff, the trading volume increased by 67.8% to over $20 billion in the same timeframe, indicating sustained investor participation.
The possibility of ETH dropping to $2,300 is very high, as it has dropped below the critical support level at $2,500. Additionally, the market sentiment is bearish, as ETH trades below the 200-day Exponential Moving Average (EMA) based on technical analysis.
Furthermore, ETH has dropped below a crucial trendline, implying that its price may challenge many of its support zones. Such a move could result in ETH establishing support in the $2,000 to $2,300 region before rallying again.
As highlighted in our earlier article, experts remain optimistic that ETH might get a big break in September. They claim the coin may jump to $4,000 before hitting its ATH of $4,876 soon after.
