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This Is How Whales Pushed Ethereum (ETH) Price Below $3,000
Ethereum’s (ETH) price is reacting to a shift in sentiment from one of the most important cohorts of investors — the whales.
This further impacts the long-term holders, who are known for their stability, as they could move to sell.
Ethereum Holders Protect Their Investments
Ethereum’s price lost a crucial psychological and technical support level over the last 24 hours. The reason behind this is the uncertainty of recovery among whales who opted to sell and secure their gains.
Following the 11% decline from July 22 to July 25, whale addresses holding between 10,000 and 100,000 ETH began selling. About 630,000 ETH worth over $1.87 billion moved out of their wallets within three days.
Read more: How to Invest in Ethereum ETFs?
This created a bearish atmosphere for the altcoin, which led to Ethereum’s price falling by 10% in the last few days. The concern now lies with further selling, as long-term holders are not feeling too great either.
According to the Long-Term Holder (LTH) Neth Unrealized Profit Loss (NUPL) indicator, LTH’s profits are down by 4%. Before the price drop, their unrealized profits were 49% and are now 45%.
This could be problematic as LTHs could move to sell their holdings to protect their gains. Since these investors are known for their resilience and stability, any bearish move from them would mean losses for all ETH holders.
Thus, their actions should be watched closely. Even if they don’t opt to sell, historically, the crypto asset faces consolidation every time LTH-NUPL drops below 50%.
ETH Price Prediction: Bounce Back, Not Consolidation
While historical cues do point at consolidation ahead for Ethereum’s price, ETH has the advantage of spot ETFs. These investment products could drive the recovery and pull the second-largest crypto back above $3,118.
This price marks the 23.6% Fibonacci Retracement line, also known as a bear market support floor. A bounce back from this level would mean recovery is ahead for the altcoin.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
However, ETH is also close to losing the support of $2,930, a technical level that has been tested multiple times in the past. Falling through it could extend the drawdown resulting in higher losses for investors.
Disclaimer
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