An anon Ethereum wallet holder sold 3,150 ETH worth over $6.37 million.
The sale occurred on Sunday at an average price of $2,023, representing a significant return in just two months.
The whale’s sizable sale prompts debates on market sentiment.
The sale of 3,150 Ethereum worth over $6.37 million by a crypto whale is sparking debate on whether investors should take profits after the token’s recent rally. The heavy transaction comes as Ethereum hovers below a technical resistance level that has repeatedly triggered sell-offs historically.
According to on-chain data, the unnamed Ethereum wallet holder sold 3,150 ETH on Sunday at an average price of $2,023 – netting a tidy profit from an earlier purchase in September of 2,762 ETH at $1,825 per token.
The $6.7 million transaction represented a nice return in just two months. But the motivation behind such a large individual sale provides broader clues on market sentiment.
Ethereum faces make-or-break resistance
Ethereum currently faces make-or-break resistance around the $2,050 level, where bulls have struggled to make headway over the past six weeks. The test presents large players with a dilemma: securing gains from the bounce off 2022 lows or continuing to ride the expected upside heading into the Shanghai upgrade next March.
The whale’s choice to bail suggests conviction may be wavering on the sustainability of the recent rally. Moreover, the move aligns with fading trading volumes across exchanges, indicating exhaustion from the buying frenzies seen this fall.
For regular investors, the fading momentum compounds the case for selling a portion of ETH holdings around the technically precarious $2,000 zone. Protection of profits takes priority amid broader uncertainty about crypto’s macroeconomic outlook in 2023.
That said, analysts also highlight likely support zones between $1,850 to $1,950 where fresh dip buying could spark the next bull run towards retesting September’s peak. The historical floor around the 50-day moving average at $1,950 is another potential bounce area to watch.