As it continues to struggle in this protracted crypto winter, Ethereum, known as one of the ord of all cryptocurrencies and the second-largest cryptocurrency by market capitalization, has reduced its recent losses.
Ethereum is currently trading at $1,332.18, up 2.1% in the past day and 3.2% in the previous week, according to tracking data from Coingecko (1). The digital asset is still performing poorly, given that it is still far behind the $4,878 all-time high it reached on November 10, 2021. The cryptocurrency started the day with a trading price of $3,848, which is over three times as much as its current price on this date last year.
Ethereum had a significant price drop, dropping 26% from its $1,773 high on September 1oth. Although the cryptocurrency, like its digital peer currencies, is not unfamiliar with price decreases brought on by the erratic volatility of its market, analysts believe large investors in Ethereum are somehow to blame for its latest decline.
Collective Ethereum Whales Dump
On October 16, the cryptocurrency market intelligence website Santiment tweeted that Ethereum whales and sharks have been unloading their altcoin holdings over the previous five weeks. According to public data (2), these large investors sold 3.3 million ETH tokens in total, valued at a total of $4.3 billion at the time of writing. According to the definition, Ethereum sharks and whales are those who own 100 to 1 million ETH currencies.
With this occurrence, it has been demonstrated that crypto whales, or the largest investors, significantly impact the market through their accumulating and dumping acts. It is crucial to remember that the cryptocurrency suffered significant losses as its price plummeted during the period when Ethereum holders were selling their possessions.
No need for panic yet
There are benefits to this evolution; according to some analysts, there is still time to avoid panicking about Bitcoin's main adversary. According to some analysts, the same investors that sold their Ethereum holdings may try to drive the asset's price higher than what was witnessed last month. The ETH sharks and whales now hold fewer tokens than when the price was $1,400, and they may try to repurchase the assets they have sold. Given that predictions from Coincodex (3) foresee the cryptocurrency plummeting to $1,221 over the next five days, this may be the scenario that ETH holders are aiming for. As the 30-day forecast has the price of ETH trading at $909.14, November is expected to bring additional difficulty for the cryptocurrency.