Whales, those investors powerful enough to influence the dynamics of the crypto market, can, through their operations, change the trajectory of a crypto. This seems to be what happened in the market with ether (ETH). While many analysts were counting on the crypto to soar to touch less than the $4,000 mark, the crypto's momentum was suddenly blunted. Some data reveals that a whale may be responsible for this shutdown. In this article, we explain how a whale neutralized the hopes of an entire community.
Massive profit taking on Ethereum crypto
A month ago, notably on Monday March 11, the price of ether crossed the $4,000 mark in the wake of the rise of bitcoin. While experts and analysts expected this dynamic to continue, the hype will be short-lived. The asset has undergone a correction which prevails until now.
However, some data that has leaked recently suggests that the recovery of the crypto's dynamism up to $4,000 was possible. If it did not materialize, it is because of the massive transactions carried out by an ether whale targeting profit taking.
According to data from Spot on Chain, the Ethereum whale reportedly made a substantial transfer of assets to Binance on April 11. We are talking about an operation involving ethers valued at $32 million according to market prices. This transfer is the largest deposit made by the whale on a crypto exchange.
A closer look at the investor's portfolio reveals that he still owns over $100 million worth of ether. If these holdings were to be liquidated at current market rates, potential profits amounting to $68.5 million could be realized.
This approach not only highlights the growing wealth of the investor. But this is not an isolated fact. The latter suggests a broader trend of profit-taking among holders of Ethereum's native crypto.
A dynamic-breaking trend that prevails among whales
In recent weeks, a notable trend has emerged in the ether market. It highlights important transactions and investor behavior. Indeed, Santiment data reveals a constant presence of ether transactions exceeding $100,000.
These crypto operations are generally associated with whale activity. This trend suggests that the latter are actively participating in the market with a view to profiting from it. Indeed, indicator analysis suggests a strategic move by Ethereum whales to capitalize on ether price movements.
Most notably, whale activity intensified after ether crossed the $4,000 mark, a milestone that had not been reached since December 2021. This surge propelled the percentage of total supply of the native crypto of the Ethereum blockchain in profit at more than 96%. As a result, this largely encouraged investors to sell off their assets.
The result of this development is that the quantity of ether held in reserve on crypto exchanges has seen a marked increase. It went from 13.62 million to almost 16 million in the space of a month. The increase in these ether reserves is not insignificant. It indicates a tendency for whales to transfer ether to these platforms in order to make profits.
However, one of the reasons for the rise in the valuation of a crypto is the tendency of investors to retain their assets. This dynamic generally has an effect on the price of crypto. This for the simple reason that investors retaining their assets leads to a drop in supply on the market. Thus, a limited supply, supported by constant or increasing demand, can promote upward pressure on the price. This, potentially leading to an increase in the valuation of the assets concerned.
From this analysis, we can draw a conclusion. Namely that if the price of ether is currently rowing in the waters of 3,440 dollars, it is essentially because the whales of Ethereum are counting more on their profits. This marching behavior could be a sign of changing dynamics and could lead to changes in investment strategies and market sentiment in the future.
Conclusion
The takeaway from this development is that the impact of whales on the ether market is undeniable. Their ability to influence market dynamics may nevertheless raise important questions about stability and reliability. cryptos. As ether hits record highs and investors anticipate continued growth, whale actions could quickly change the game. This, in one sense or the other.
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