Ethereum Whale Dumps $33 Million Worth of ETH as Crypto Plunge 15% in Single Week

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A significant Ethereum holder (often referred to as a “whale”) disposed of approximately 10,070 Ether for around $33 million in Dai on Sunday, as per the reports from blockchain analytics firm Lookonchain. This transaction is said to have resulted in a loss of roughly $1 million for the investor. Interestingly, this whale had withdrawn 24,029 Ether (equivalent to around $81 million) from Binance three weeks prior, leaving them with a current holding of approximately 13,959 Ether, worth around $45.48 million.

Three large investors (possibly the same one) have recently sold 10,070 Ether for 33 million DAI at approximately $3,280 each, incurring a loss of about $1 million. These whales had transferred 24,029 Ether (worth around $81.3 million) from Binance to ten new wallets three weeks ago and currently hold 13,959 Ether ($45.48M).

— Lookonchain (@lookonchain) January 13, 2025

This significant drop in Ethereum’s value occurred during a challenging week for the cryptocurrency, with over 15% of its worth being lost. As reported by CoinGlass, the open interest in Ethereum futures has decreased by approximately 9%, from $32 billion on January 5 to $29.12 billion on January 13. This decline in price and reduced futures interest suggests a bearish outlook among traders in the market.

To further fuel the chaos, there’s been a more than 70% increase in substantial transactions, those worth over $100,000. This surge suggests increased activity from big-time investors. These trends highlight a major transformation in market behavior, as it appears that ‘whales’ are becoming more active in this unpredictable market scenario.

RSI and MACD Hint at Further Downtrend

In simpler terms, the charts showing Ethereum’s performance are suggesting a difficult trend. The Relative Strength Index (RSI), which was close to 50 before the drop in price, has moved into a zone indicating increased selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) chart is giving signals of a downward crossover, possibly suggesting more decreases may follow.

The data recorded on the blockchain supports this viewpoint, as trading activity surged when the whale made their sale. In particular, the Ethereum/DAI market on Binance has experienced a significant rise in sell orders, which has led to a decrease in market liquidity. This reduced liquidity could magnify price fluctuations, leading to uncertainty for both institutional and individual traders.

As a researcher delving into the intricacies of cryptocurrency trading, I’ve noticed an interesting trend: Despite the seemingly bearish technical indicators, derivatives traders on Binance are expressing optimism through their actions. Strikingly, over 82% of active Ethereum contracts on this platform are long positions, a clear sign of confidence in the potential for a rebound. This finding underscores the belief that market sentiment can sometimes defy technical analysis, making it an essential aspect to consider when predicting market movements.

Can Ethereum Recover amid 15% Weekly Drop?

A large sale of Ethereum by a whale has brought new volatility into the market. Not only have Ethereum prices been influenced, but it’s also stirred up broader concerns among investors, as demonstrated by heightened trading actions and a drop in overall market trust, due to this event.

Currently, Ethereum’s worth is $3,108, marking a 4% decrease over the past day and a more significant 15% fall during the last week. Despite this, it has slipped by 2.86% since the start of the year. However, this pales in comparison to the overall market’s 46% growth in 2024, highlighting Ethereum’s current challenges.

Yet, analysts are pointing out the possibility of a rebound within the intermediate period. Despite the predominantly negative feelings right now, changes in the overall market dynamics or economic conditions might favor cryptocurrencies in the future.

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2025-01-13 16:33