Market on alert as Ethereum ICO participant sells 3,000 ETH
Market on alert as Ethereum ICO participant sells 3,000 ETH
Ethereum’s price movement has recently taken a bearish turn, driven by substantial sell-offs from early investors.
These investors are participants from the Ethereum Initial Coin Offering (ICO) who have woken from years-long dormancy, unloading considerable amounts of ETH onto the market.
A staggering 3,000 ETH worth $7.64 million were unloaded on October 24 by an Ethereum ICO participant. Almost immediately, Ethereum’s price dropped by 1.4%, sliding from $2,545 to $2,510 within minutes before bouncing slightly to $2,520.
It’s no secret that heavy sell pressure can stir up volatility in the crypto market, and this isn’t the first time we’re seeing a similar pattern.
Back in July, this same whale offloaded 7,000 ETH valued at around $24.28 million, and ETH quickly tumbled 15% over the following weeks.
Earlier this month, a different participant sold 19,000 ETH worth $47.5 million, after offloading 12,010 ETH valued at $31.6 million just weeks before.
The wave of such high-profile sales is sparking growing fear, uncertainty, and doubt (FUD) about the future of the alpha altcoin.
The big picture?
While many of these ICO investors acquired their ETH for cents back in 2014, recent sales indicate they’re cashing in at today’s much higher valuations—some still holding tens of millions worth of ETH. Such moves have led market analysts to question how much more selling might be on the horizon.
Ethereum technical outlook and key levels to watch
On the technical front. Ethereum has already lost around 11% this week, leading the declines among major cryptos. Its price is currently moving within a bearish pennant pattern inside a larger three-month trading range of $2,800 to $2,200.
This pennant could hold clues to the next direction: if ETH decisively breaks above or below this pattern, could signal the start of a more substantial trend.
