An anonymous crypto whale recently sold 3,150 Ethereum (ETH) worth over $6.37 million, sparking debate within the crypto community about the prudent strategy for investors in the aftermath of Ethereum’s recent price surge.
The significant transaction occurred as Ethereum hovered below a critical technical resistance level, which has historically been known to trigger sell-offs.
The sale was carried out on Sunday by an unidentified Ethereum wallet holder, who sold 3,150 ETH for an average price of $2,023.
Given the earlier purchase of 2,762 ETH in September for $1,825 per token, this move resulted in a profitable outcome.
The $6.7 million transaction represents a significant return in less than two months. However, the reasons for such a large individual sale provide insight into broader market sentiment.
Ethereum is currently battling a make-or-break resistance level of around $2,050, where bulls have faced persistent challenges over the last six weeks.
Significant players face a choice between locking in profits from the rebound from 2022 lows and continuing to ride the anticipated upside leading up to the March Shanghai upgrade.
The whale’s decision to liquidate holdings suggests a waning belief in the long-term viability of the recent rally.
Furthermore, this move coincides with decreasing trading volumes across exchanges, indicating exhaustion following the buying frenzy seen this fall.
For everyday investors, the waning momentum strengthens the case for selling a portion of their ETH holdings, particularly around the technically risky $2,000 level.
Profit protection becomes critical in the face of widespread uncertainty about the crypto space’s macroeconomic outlook in 2023.
Despite this, analysts point to potential support zones between $1,850 and $1,950, where renewed buying interest could catalyze the next bullish trend toward a retest of the September peak.
The historical floor around the 50-day moving average at $1,950 is also worth watching for a potential bounce-back.
James Wilson is a crypto writer and researcher with over 5 years of experience in the industry. He is a graduate of the University of California, Berkeley, where he studied computer science and economics. After graduating, he worked as a software engineer at a major tech company before transitioning to a career in crypto.
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