According to insights from IntoTheBlock, a cluster of 1.38 million addresses acquired 1.33 million ETH, amounting to a staggering $3.9 billion, at an average price of $2,984. These investors are currently in the red, facing unrealized losses due to the recent price dip.
The psychological impact of such a significant number of investors sitting at a loss cannot be understated. As Ethereum's price approaches their break-even point, these holders may be prompted to sell, either to recoup their initial investment or to prevent further losses, potentially leading to an increase in selling pressure.
Adding to this narrative are substantial moves by Ethereum whales, which have historically been indicative of imminent price shifts. Recent activity includes the sale of 34,134 ETH, valued at $100.8 million, near the crucial $3,000 level. Notable transactions by individual whales, including addresses 0x7102 and 0x702a, involve significant amounts of ETH being moved to decentralized exchanges (DEXs) and large platforms like Binance and Kraken. These transfers could be precursors to potential sell-offs, considering the sizeable amounts involved.
At present, Ethereum's USD pair shows that after a remarkable rally, the price has settled near the $3,000 mark. While the aforementioned whale activities and the volume of "at a loss" investors could suggest a bearish outlook, the price of Ethereum remains resilient. The $2,984 level, where a bulk of purchases occurred, could serve as a soft support zone. A fall below this price might trigger a cascade of sell orders, resulting in further downward momentum.
Conversely, if Ethereum sustains above this level and reclaims ground above $3,000, it could alleviate the immediate selling pressure and potentially lead to a reversal, aiming for resistance levels at $3,100 and beyond. However, market participants should be wary of the large sell-offs by whales, which could dampen the bullish momentum.