Following a considerable surge the previous week, Ethereum‘s (ETH) price has leveled around the $3,500 mark. As the value plateaus, numerous investors have opted to cash in their gains. The largest ETH holder reportedly exchanged a massive 17,770 ETH for 62.24 million DAI at a price of $3,503 each.
Profit-Taking by Prominent Ethereum Holder
This particular investor had amassed roughly 14,280 ETH over four years, starting from March 2017 to April 2021, at an average acquisition cost of $182 from exchanges like Gemini and Bittrex. With the sale, the investor reaped profits nearly 23 times the initial investment, netting a gain of about $59 million. The dumping of a large ETH stash by this whale introduces considerable liquidity into the market.
The sale’s effect on Ethereum’s market is contingent on the buyers’ ability to absorb the excess ETH. While it may apply short-term bearish pressure, the market’s perception will dictate the ultimate outcome. A panic-induced sell-off could depress prices further, but if perceived as a normal profit-taking event, it may invite buyers looking for an entry point, thus supporting price stability or recovery.
Technical and Ecosystem Indicators for Ethereum
Currently, ETH trades at $3,571.59, a 27% drop from its peak. A successful breach of the resistance at $3,674.23 could halt the current downtrend and push the price towards $4,081.55. Nevertheless, a declining Chaikin Money Flow hints at reduced investment inflow, potentially signaling a stagnant or downward trend ahead for ETH’s price.
Ethereum’s ecosystem maintains its vibrancy, reflected in consistent gas usage, which bodes well for ETH’s prospects. On the other hand, the recent slump in NFT trades on the network may suggest waning interest in this niche, which could affect Ethereum’s long-term network activity adversely.