Can Pepe Coin Price Survive A $38M Dormant Whale Dumping ETH?

Pepe coin price continues to face hardships as Ethereum price struggles to break above key resistance levels. Pepe coin has a strong correlation with Ethereum. While the meme coin dropped 6.5% in the last 24 hours, Ethereum slid 5.6% in the same duration, hampering the growth of PEPE price. 

The slump in the Ethereum price could be due to a dormant whale waking up and dumping coins on the market, further complicating the Ethereum price rally to $4K, which is already at risk amid division talks surrounding the upcoming Pectra upgrade.

$38M ETH at Risk Could Negatively Impact Pepe Coin Price

A huge Ethereum whale that has been dormant for eight years is awakening. Spot Onchain detected moving its large ETH holdings, potentially positioning to sell. 

The whale potentially bought 16,636 ETH at sub-5 prices and, in 2016, transferred them out of the ShapeShift exchange. The Ether price was valued at $87,136 on the transfer day, around $5.24 per ETH. The whale has held until today, accruing a total profit of 436X (43,600%) in less than ten years.

The large investors have moved the portfolio, worth over $37.1 million at current prices, to a new address, “0xe3e”.

The market is cautious about the next movement, as a large whale dump could impact the value of Ethereum and Pepe coins.

Correlation With Ethereum Is A Bearish Indicator

According to data from IntoTheBlock, Pepe coin has a correlation coefficient of 0.81 with Ethereum, which means Pepe coin price is likely to be influenced by the value of ETH. 

The chart below shows the actual price action movement of PEPE and ETH in the 4-hour time frame. The PEPE price reacts much more explosively to Ether’s movements, which could be disadvantageous for Pepe coin in the event of a sharp downturn in ETH’s value.

The PEPE price is down 6.9% in the last 24 hours and hangs on the balance as the asset is almost at the end of a bearish continuation pattern.

PEPE Price Hangs On The Balance Ahead of Potential Whale Dump

Pepe coin price is moving downward according to the well-defined descending resistance trendline on its 4-hour chart. The asset price has been downtrend since May, with no major trend reversal signals yet. Additionally, the asset is almost at the end of a descending triangle, a bearish continuation pattern.

PEPE has a strong support zone visible between $0.00000600 and $0.00000700, and resistance on the other side is near 0.00000800. A breakout above this trendline would signal a potential reversal from the bearish trend.

If the price of PEPE breaks and holds above the descending trendline, entering a long position as the value could surge to $0.000001000 or even $0.000001200 and $0.000001700.