Key Insights:
- Ethereum whales dump 40K ETH, raising sell-off concerns.
- ETH struggles at $2K as unrealized profits turn negative.
- Investors rotate capital while key resistance forms at $2.8K.
Ethereum price is going through a rough patch. Whales have offloaded 40,000 ETH as the token struggles to hold the $2,000 level. Unrealized profits for large holders have turned negative for the first time since 2023, raising concerns that more selling could follow. Meanwhile, investors are actively moving funds across different price levels, trying to find the next opportunity.
Ethereum Whales Cash Out—Is More Selling Coming?
A whale that received 114,500 ETH as part of Genesis Trading’s liquidation in Aug. 2024 has sold off 40,000 ETH, worth around $89.9 million, through over-the-counter (OTC) trades in the last two days. The whale now holds 30% less ETH than before, suggesting a loss of confidence in the market.
Ethereum’s price has dropped over 13% in the past week, and on-chain data from Arkham Intelligence shows that large investors are moving coins to exchanges at an increasing rate. More than 60,000 ETH has been deposited onto exchanges in the last two weeks—often a sign that traders are preparing to sell.
Analyst Miles Deutscher pointed out that whales holding between 1,000 and 10,000 ETH are now sitting on negative unrealized profits. That means they bought ETH at higher prices and are now underwater. If prices don’t recover soon, these large holders may be forced to cut their losses, pushing the price even lower.
Ethereum Is Now “Undervalued,” But Who’s Buying?
While the selling pressure is rising, some analysts argue that Ethereum has entered an undervalued zone. CryptoQuant’s Market Value to Realized Value (MVRV) ratio has fallen below 1, historically signaling that ETH is trading close to its average purchase price across all holders.
This metric suggests that ETH could be near a bottom—at least for now. But that doesn’t mean buyers are rushing in just yet. With traders still on edge, it remains to be seen if the so-called undervalued zone attracts enough demand to stop the decline.
Investors Rotate Capital as Ethereum Price Struggles
Ethereum’s price action has been chaotic, with sharp moves up and down. Glassnode data reveals that investors are adjusting their positions to stay ahead of the volatility.
ETH briefly touched $2,500 before dropping back to $2,050, marking its lowest point since Nov. 2023. A closer look at the past three months shows that investors who originally held ETH at $3,500 have been offloading their holdings. However, some of them re-entered at lower levels, with 1.75 million ETH now held at an average price of $3,200.
On March 1, around 500,000 ETH was scooped up at $2,200, only to be sold again when prices hit $2,500. Meanwhile, 800,000 ETH has been accumulated at $2,800, setting up a major resistance level. If Ethereum recovers, this will be the key price to watch.
Ethereum Repeats Bear Market Patterns—More Pain Ahead?
Ethereum’s recent price action is eerily similar to what happened in 2019, during the Federal Reserve’s previous cycle of monetary tightening. Analyst Benjamin Cowen pointed out that ETH formed a wedge pattern back then, briefly broke out, and then crashed—marking the cycle bottom for ETH/BTC.
ETH recently fell out of its wedge pattern into its regression band, hinting at further downside. Cowen believes that the extended duration of quantitative tightening (QT) in this cycle could keep Ethereum under pressure longer than in previous bear markets.
CryptoQuant analyst Darkfrost described the situation as “a phase of rather intense FUD combined with very complex price action.”
Ethereum is at a turning point, with whales selling and investors on edge. A rebound is possible if it stays above $2,000, but a drop below could send prices tumbling further.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
