Whale activity surges on Ethereum amid growing price volatility
Whale activity surges on Ethereum amid growing price volatility
Not everyone’s a fan of the Ethereum Foundation’s regular sales of Ether. However, Ethereum’s recent price movements have captured the attention of large investors, sparking a notable shift in whale activity.
Ethereum co-founder Vitalik Buterin recently defended the regular sales of Ether, explaining that the revenue is needed to fund critical development and research for the network's proof-of-stake mechanism. Addressing critics head-on, Buterin pointed out that these resources ensure the Ethereum network maintains low transaction fees and unparalleled uptime. He clarified that staking all the Foundation’s Ether isn’t in the cards either, as this would create unwanted risks in case of a controversial hard fork.
Following the sale of Ether and its recent price dip, Blockchain data firm Santiment reported that whale transactions on the Ethereum network have surged to a six-week high as significant players stepped up accumulation. This accumulation, which saw more than 6,400 new wallets created by these high-capital stakeholders, is considered a bullish signal and may be a precursor to Ethereum’s next price move.
Ethereum bearish pennant signals opposing technical outlook
Ethereum is currently trading at $2,466, near the support of a bearish pennant pattern. This is after a recent 14% slide from $2,770 to $2,380 last week.
If Ethereum breaks below the $2,400 level, a drop to $2,200 seems likely. However, should it break above the $2,500 resistance, the next target rises to $2,800. Some analysts see this as the start of a larger breakout from Ethereum’s three-month consolidation range, potentially aiming for the $4,000 mark—or even a bold $6,000.
The market is on alert as an Ethereum ICO participant sells 3,000 ETH. Fear, uncertainty, and doubt (FUD) grow about the future of the alpha altcoin.
Earlier we reported that open interest in Bitcoin reaches record high $33B.
