Ethereum‘s (ETH) price has historically reacted to decisions made by whales, and a similar situation is occurring again. The current scenario raises questions as long-term investors, known for their stable market movements, might start selling.
Ethereum Whales and the Current Situation
Ethereum’s price experienced a significant event after approximately 25 days, dropping below the critical support level of $3,000 within 24 hours, although it is currently just above $3,000. This price drop is believed to be due to sales by whales who want to avoid losses amid existing uncertainties.
Between July 22-25, after an 11% drop, whale addresses holding between 10,000 and 100,000 ETH were seen selling. Over three days, whales moved 630,000 ETH worth over $1.87 billion from their wallets.
This situation is considered one of the reasons for the recent 10% drop. Long-term wallet addresses turning to sales due to uncertainties create more significant selling pressure.
According to data presented in the Long-Term Holder (LTH) Net Unrealized Profit/Loss (NUPL) indicator, there was a 4% decrease in LTH profitability. Unrealized profits were at 49% before the price drop and have now fallen to 45%.
LTHs considering selling their ETH to protect their profits could create issues in the market. This investor group, known for their stability, turning to sales could trigger a general market decline.
Even if no sale occurs now, historical analyses show that when the LTH-NUPL ratio falls below 50%, ETH enters a consolidation phase.
What Will Be the ETH Price?
Although historical data suggests a possible consolidation in Ethereum’s price, ETH seems to have an advantage on the spot side. A recovery on the spot side could see the price return above $3,118.
This level corresponds to the 23.6% Fibonacci retracement line, long considered a critical support for Ethereum. A price rejection at this level could mean a further delay in ETH’s recovery. Conversely, if a downtrend occurs and the price falls below $2,930, the decline could deepen further.
