- Ethereum whales are offloading massive holdings, with one incurring a $1 million loss, as ETH struggles to break the $3,500 resistance.
- Despite short-term bearish sentiment, analysts remain optimistic about Ethereum’s long-term potential, projecting a rally past $10,000 by 2025.
Ethereum has been facing immense pressure following increased whale activities. Supply dynamics have also contributed to the mounting uncertainty.
Notably, Ethereum whales have been offloading significant amounts of EH tokens. At the same time, ETH’s price has been struggling to surpass the $3,500 mark. This activities combined have hindered the next stage of the rally, leaving investors cautious amidst a supply glut approaching pre-merge levels.
Reportedly, a notable transaction, a whale unloaded 10,070 ETH for 33 million DAI at an average price of $3,280 per ETH, incurring a $1 million loss. Blockchain data from LookOnChain has revealed that this whale had withdrawn 24,029 ETH, valued at $81.3 million, from Binance three weeks prior. Despite the recent selloff, the whale retains 13,959 ETH, worth $45.48 million, across multiple wallets.
Adding on to the pressure, as we earlier reported, late last year saw, Tron’s founder, Justin Sun has been has exhibited more frequent and significant interactions within the Ethereum ecosystem. Tron founder Justin Sun deposited $320.4 million worth of ETH to the crypto exchange HTX within 13 hours. Over the past year, Sun has transferred a total of 323,591 ETH, worth $1.124 billion, at an average price of $3,472. These deposits indicate potential selloffs, further weighing on market sentiment.
Ethereum Supply Reaches Pre-Merge Levels
Prominent crypto analyst Benjamin Cowen highlighted that ETH’s supply is now inflationary, reversing the deflationary trend anticipated after the Merge. With supply growing by 45,000 ETH monthly, it is only 32,000 ETH away from pre-Merge levels. This oversupply coincides with a slump in demand, exacerbating price pressure.
Ethereum Price Analysis
Meanwhile, at the time of writing, ETH is swapping hands with $3,056.34 after a 6.09% dcline in the past 24 hours. Additionally, the digital asset has fallen short by 16.61% and 21.57% in the past week and month respectively. This price activity has led to ETH realizing a 6.58% drop in market cap stopping at $365.69B.
Despite the bearish sentiment, long-term bullish predictions for Ethereum remain intact. Analysts like Altcoin Sherpa suggest the current downturn could align with historical market cycles. Key stages identified include a liquidation phase (red zone), a temporary recovery with a lower high (yellow zone), and a retest of previous lows followed by a potential rally (yellow circle).