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Highlights
- A major Ethereum whale from Genesis Trading has liquidated 40,000 ETH worth $89.9 million over the past two days.
- Data from CryptoQuant reveals that the unrealized profit ratio for Ethereum whales has dropped to levels of bear market.
- Rising exchange deposits of over 60,000 ETH in two weeks signal growing selling pressure.
- Analyst Benjamin Cowen highlights similarities between ETH’s current price action and its 2019 amid Fed tightening.
As the ETH price crashed to $2,000, Ethereum whale activity has shot up significantly. A whale that received compensation during the Genesis Trading last year in August 2024, sold a staggering 40,000 ETH in this market crash. Amid its strong underperformance, the market sentiment for the altcoin seems to be worsening further.
Ethereum Whale Offloads 40,000 ETH Amid Market Uncertainty
A major Ethereum whale, known for receiving the largest ETH compensation during the Genesis Trading liquidation in August 2024, has reportedly sold 40,000 ETH, worth a staggering $89.9 million through over-the-counter (OTC) trades in the past two days.
This address had received a total of 114,500 ETH valued at $358.19 million during the liquidation process, as per data from Arkham Intelligence. However, it has now offloaded nearly 30% of its holdings in the last two days. This comes as the ETH price has been on a free fall, dropping more than 13% over the last week, raising concerns about price stability.
Unrealized Profits Plunge to Bear Market Levels
According to data from CryptoQuant, the unrealized profit ratio among Ethereum whales has dropped to levels not seen since the previous bear market. The ETH/BTC ratio has been on a continuous downtrend amid the growing fear, uncertainty, and doubt (FUD) in the market.
Despite Ethereum’s price being roughly twice as high as it was during the bear market, many whale positions are now yielding the same profit levels as before. Notably, the whale cohort holding between 1,000 and 10,000 ETH has reverted to a negative unrealized profit ratio. This shows a concerning situation as analysts warn of heightened volatility ahead for ETH.
On the other hand, the ETH exchange deposits have also been on the rise. On-chain data shows that over the last two weeks, investors have moved more than 60,000 ETH to exchanges, suggesting heightened selling pressure.
ETH Price Repeats Historical Patterns From 2019
Prominent crypto analyst Benjamin Cowen has drawn parallels between current ETH price action and its performance during the previous Federal Reserve monetary tightening cycle. According to Cowen, Ethereum is repeating its 2019 behavior during the Fed’s quantitative tightening (QT) phase.
The analyst noted that in 2019, ETH formed a wedge pattern under QT conditions, and remained in the same structure for almost a year. A brief breakout above the wedge preceded a sharp decline below it. Interestingly, it also coincided with the Fed’s QT policy shortly afterward.
This marked a bottom for the ETH/BTC pair, followed by a rally in ETH/USD, though the price later dipped deeper into its regression band.
Cowen notes that this cycle appears to be unfolding similarly, with the main difference being the extended duration of QT in the current cycle. Presently, the ETH price has broken down from its wedge pattern into its regression band. The analyst suggests there are “decent odds” that the Fed could end QT within the next few months.
As of press time, ETH price is trading 5.46% up at $2,191 with daily trading volumes down 16.73%. Moreover, the ETH open interest is up 2.62% to $19.23 billion. If ETH price drops under the crucial support of $2,000, it can further tank to $1,000.
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