Recent data reveals that Ethereum (ETH) whales are significantly selling off their holdings. One such instance involved a transaction where a whale sold 4,549 ETH for approximately $8.78 million, at a price of $1,930 around 14 hours ago. Notably, this particular whale initially spent $6 million to buy 4,549 ETH at a price of $1,319 on Jan. 9, which means they made a profit of approximately $2.78 million.
This sell-off pattern among ETH whales might have been triggered by a strategic move to reap the benefits of the cryptocurrency's recent surge in value. This market situation largely stems from the positive court decision in favor of Ripple's XRP, which had a ripple effect on several other cryptocurrencies, including Ethereum.
A whale sold 4,549 $ETH for 8.78M $USDT at a price of $1,930 14 hrs ago.— Lookonchain (@lookonchain) July 16, 2023
This whale spent $6M to buy 4,549 $ETH at a price of $1,319 on Jan 9, and has earned $2.78M so far.https://t.co/pzSfTqYuPn pic.twitter.com/PEtWS9LXmE
The court's decision seems to have provided a significant boost to the overall cryptocurrency market sentiment, leading to a considerable price appreciation for several tokens, Ethereum included.
Subsequent to the XRP court decision, Ethereum surged to around $2,000. This impressive rally undoubtedly offered an attractive profit-taking opportunity for ETH whales who had acquired their holdings at lower price levels. As such, the current ETH sell-off by whales could be a reflection of these large investors cashing in on their profits, an understandable move considering the crypto market's notorious volatility.
However, as whales started selling, the price of Ethereum began to retreat from its $2,000 level, a natural market reaction to a substantial sell-off. This recent activity in the Ethereum market serves as a reminder of the significant influence whales can wield on crypto prices, often leading to sharp price fluctuations.