The price of Ethereum risks dropping 50% as whales take large profits
Ethereum is struggling to maintain a price above $2,000. Although buying pressure is still present, continuous selling pressure has hindered the price increase. Experts predict that if it does not hold above $2,050, ETH could fall below $1,500, potentially dropping to $1,095 in the coming weeks.
This pressure has intensified after a long-term "whale" took massive profits. A prime example is investor "0x086", who recently sold 34,125 ETH on Coinbase at an average price of $1,970, netting approximately $65.66 million in profit. These tokens were purchased in 2017 at a price of only $46.3/ETH, equivalent to a profit margin of 4,156%.
Such large-scale profit-taking is contributing to the decline in Ethereum's price and increasing market volatility.
Additionally, the trading volume and open futures contracts for Ethereum have both decreased, indicating a clear weakening of market sentiment. The current price of ETH is around $1,973, down 2.26% from before, with trading volume dropping 40% to $12.21 billion per day.
Large investors are divided into two trends: one side taking profits, while the other is staking long-term. Meanwhile, spot Ethereum ETFs are struggling due to the lack of staking support – a crucial factor for generating profits in the ETH ecosystem.
Bitwise and NYSE are proposing to integrate staking into ETFs. However, it is still unclear when these proposals will be approved and implemented, leaving market sentiment still highly unstable.
