As the price squeeze continues on the Ethereum market, ETH whales are heightening their sales. Data released by Onchain Lens shows investors are currently cautious as Ether struggles.
These movements highlight the dynamic nature of cryptocurrency markets. While other tokens are experiencing downtrends, others are seeing green. Prominent assets like Bitcoin and Solana continue to show strength eyeing further price increases ahead.
Whale dumps $12 million of ETH
According to data presented by Onchain Lens today, a whale created a new wallet and used it to sell 1,521 Ether tokens for $4.95 million DAI in a single transaction. Based on this transaction, the trader sold the 1,521 ETH coin at an average price of $3,254.
Also, in the past hours, the trader used the newly created wallet to sell a total of 2,154 Ethereum coins for $7.05 million DAI at an average price of $3,277. As per the data, the whale transferred the DAI tokens to seven different wallets.
The trader’s activity indicates low user sentiment on Ethereum, signaling Ether whales are dumping their tokens. In the recent past, Ether holders sold their assets to minimize losses as the market consolidation hit harder.
Early last week, three wallets, possibly belonging to the same whale, sold 10,070 ETH for 33 million DAI at an average price of $3,280. It was a desperate move as the trader lost $1 million through the transaction.
The action by these traders to sell their Ether tokens and buy Dai stablecoins highlights that whales are selling volatile cryptocurrencies to seek safety in dollar-tied tokens.
While this approach can cause bears on exited coins, traders who decide to invest in stablecoins do so because they ultimately plan to re-enter the volatile world.
Ether prices face an uphill task
Ethereum’s price has stayed in a tight range of $3,200 to $3,384 this month as its ecosystem experiences significant challenges. The second largest cryptocurrency is currently trading at $3,268.11, 18.45% lower than its December highs, indicating its prolonged consolidation.
Part of the reason for Ether’s price struggle is due to ongoing token sales by the Ethereum Foundation. Recently, this foundation has been under scrutiny because of executing significant sales involving Ether.
Despite wider goals behind such massive Ether sales, they recently left negative reactions from holders and enthusiasts.
However, the Ether ETFs are one of the catalysts that could make Ethereum prices see tremendous rise in the future. If these ETFs continue to attract investor interest, they could drive Ether prices up and decrease volatility.
Currently, Ether prices are wildly fluctuating and whales and traders are channeling their ETH coins to alternative stable altcoins. Latest data shows Ether whales are increasingly selling, and if there is no potential sustained reversal ahead, then Ethereum prices may see further declines.
