ETH whales are moving away from the altcoin, but THIS could create an opportunity for bulls to mount a rescue.
- A whale strategically sold 15K ETH into an exchange, responding to current market dynamics. However, a reversal could be on the horizon for ETH.
Ethereum [ETH] surged over 14% this past week, priced at $2,641, with the next target at $2,769. Meanwhile, Bitcoin bulls were working to maintain a position above $62K.
Typically, when BTC faces pressure at critical resistance, it can indicate increasing interest in altcoins.
However, recent activity from a “diamond hand” ETH whale, who transferred 15K ETH to a major exchange, has sparked concern among investors.
Fear has reached ETH whales
Looking at the chart below, the whale cohort holding between 100 and 1K ETH has consistently declined since peaking in early 2021, while the rest have shown confidence in future gains.
Source: CryptoQuant
However, a recent X post revealed that an anonymous whale sold ETH valued at $38.4 million from their wallet into Kraken.
Interestingly, this whale was considered a “diamond hand” – a term that describes investors who HODL their coins for extended periods without plans to sell.
Understandably, their sell-off may instill fear among stakeholders. If this trend continues, selling pressure on the alt could push it below $2,600.
Typically, in this situation, most investors attempt to retreat to breakeven – a strategy this whale seems to have followed as well.
Understanding THIS strategy might combat pressure
Currently, ETH bulls are tasked with defending the $2.6K support against the selling pressure. As noted earlier, a bearish pullback may ensue if this level is retested.
In such a scenario, approximately 4 million addresses holding $8 million worth of ETH would shift into a loss position.
Source: IntoTheBlock
On the daily price chart, the alt last peaked at $2,700 on the 23rd of September. This level has become contentious, having been tested in mid-August before bears pushed ETH below $2.2K.
Before a similar trend could emerge, coinciding with BTC consolidating below $64K, the whale closed its position to breakeven.
If more whales follow suit, additional stakeholders may slip into loss positions, potentially triggering a bearish cycle that could prevent bulls from surpassing the $2,700 ceiling.
The bulls are regaining control
While the whale strategy has once again thwarted a direct breakout opportunity, investors are positioning themselves for a bullish reversal, as illustrated in the chart below.
Source: IntoTheBlock
A surge in net outflows points to a potential correction, indicating that investors are actively attempting to absorb selling pressure by accumulating ETH.
If this trend holds, a push above $2.7K could be imminent, though vigilance regarding whale activity remains crucial. Conversely, if this uptick proves to be a temporary blip, a retracement to $2.2K may become increasingly likely.
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