Ethereum (ETH) Price Reacting to Whales’ Sentiment Changes
The price of Ethereum is currently being influenced by the sentiment changes among whales, a key investor group in the cryptocurrency market. This shift in sentiment has important implications, especially as long-term holders, known for their stability, may start selling their holdings.
Protecting Ethereum Holders’ Investments
Over the past 24 hours, Ethereum has seen a decline in both psychological and technical support levels. This can be attributed to the uncertainty surrounding the actions of whales, who have started selling their holdings for profits. In just three days, approximately 630,000 ETH, valued at over $1.87 billion, was offloaded from whale wallets.
As a result, this bearish sentiment has impacted altcoins as well, causing Ethereum’s price to drop by 10% recently. The concern now lies in the possible further selling pressure from long-term holders who are also feeling the impact of recent market movements.
According to the Ethereum Unrealized Profit Loss (NUPL) metric for long-term holders (LTH), their profits have declined by 4%. Previously at 49%, their unrealized profits now stand at 45%. This decrease in profits could prompt LTH investors to sell their holdings in order to safeguard their returns, potentially leading to losses for all Ethereum holders.
Ethereum Price Prediction: Bounce, Not Bottom
While historical signals suggest that Ethereum’s price may have bottomed out, the presence of a spot ETF could provide a catalyst for a recovery. With the potential support from these investment products, Ethereum could surpass the $3,118 mark, corresponding to the 23.6% Fibonacci retracement level.
A bounce from these levels could help accelerate Ethereum’s recovery. However, it is crucial to monitor the support level at $2,930, which has been tested multiple times in the past. Failure to break through this level could lead to a further decline and increase investor losses.
