Ethereum Drops 6% as Whales Cash Out After Price Rally
Ethereum dropped nearly 6% to around $4,260 as profit-taking by whales followed a recent rally near $4,700. This sell-off caused volatility across the market, impacting Ethereum-based NFTs.
Whale Activity
- Whale wallet 0x89Da closed a long position of 21,683 ETH ($93.5 million) at a loss of $6.6 million, then reopened a long for 15,353 ETH ($65.6 million).
- A trader who started with $125K built a position of 66,749 ETH ($303 million), locking in profits of $6.86 million.
- Another trader, 0x8062, sold 2,277 ETH ($9.57 million) at $4,203, securing a $4 million profit.
- Whale 0xd8d0 sold 10,000 stETH ($38.1 million) and 398 BTC ($46.4 million) for $84.9 million USDC before buying back 10,000 ETH ($43.4 million) and 350 BTC ($40.5 million).
NFT Market Impact
The NFT market lost $1.2 billion in value, dropping from $9.3 billion to $8.1 billion, a 12% decline, due to ETH's price decrease affecting NFT pricing.
Price Analysis
ETH is trading within an ascending channel, facing resistance near $4,500–$4,700. A dip towards $4,260 indicates short-term profit-taking. The RSI suggests overbought conditions while MACD indicates bullish momentum. If ETH remains above $4,200, a recovery towards $4,600–$4,700 is possible; however, a drop below $4,200 may lead to support at $3,800–$3,900.
ETH weekly chart with momentum indicators. | Source: TradingView