Recent research shows that whales in Ethereum (ETH) are drastically reducing their holdings. One such transaction involves the sale of 4,549 ETH by a whale for almost $8.78 million at a price of $1,930 about 14 hours ago. Notably, on Jan. 9, this specific whale paid $6 million to purchase 4,549 ETH at a price of $1,319, meaning they generated a profit of almost $2.78 million.
This sell-off trend among ETH whales may have been brought on by a calculated attempt to capitalise on the recent rise in value of the cryptocurrency. The favourable court ruling in favour of Ripple’s XRP, which had a knock-on impact on numerous other cryptocurrencies, including Ethereum, is primarily to blame for the current market position.
The court’s ruling appears to have significantly improved the attitude in the cryptocurrency market as a whole, causing various tokens, including Ethereum, to appreciate in value.
Following the XRP court ruling, Ethereum soared to almost $2,000. For ETH whales who had bought their shares at cheaper prices, this remarkable surge definitely presented a tempting chance for profit-taking. Therefore, the current sell-off of ETH by whales may be a result of these substantial investors taking advantage of their gains, which would be understandable given the cryptocurrency market’s well-known volatility.
However, as whales started to sell, Ethereum’s price started to decline from its $2,000 level, a normal market response to a significant sell-off. The recent action in the Ethereum market serves as a reminder of the huge effect whales may have on cryptocurrency values, frequently resulting in rapid price swings.
