New data from CryptoQuant indicates that Ethereum (ETH) whales are engaging in a second significant round of profit-taking, a development that suggests the cryptocurrency’s price may not be poised for substantial higher movements in the immediate future.
According to the analysis, “ETH whales have now completed 2 profit-taking” events. These “whales” are identified as large accounts holding over 100,000 ETH.
The data clearly shows these substantial holders are actively distributing their Ethereum holdings, which typically signifies a reduction in their exposure and a realization of gains made during recent price movements.
The act of large investors, or “whales,” selling off portions of their holdings often implies a sentiment that current price levels are attractive for locking in profits, and that the likelihood of further significant upward momentum might be limited in the short term.
When such substantial amounts of a cryptocurrency are distributed, it can increase selling pressure on the market.
While the report does not explicitly predict a price drop, the strong emphasis on profit-taking by these dominant market players suggests caution for those expecting a rapid ascent for Ethereum. Investors will likely be watching closely to see if this distribution pattern continues and how it impacts ETH’s price trajectory in the coming days and weeks.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ethereum-whales-engage-in-second-round-of-profit-taking/