Ethereum, which is known as the “king of all altcoins” and is the second-largest cryptocurrency by market capitalization, has been able to recoup some of its losses despite continuing to struggle during this prolonged crypto winter.
Ethereum is currently trading at $1,332.18, according to Coingecko’s tracking, up 2.1% in the last 24 hours and 3.2% in the past week.
However, despite the fact that it is still far from its all-time high of $4,878 on November 10, 2021, the digital asset is still performing poorly.
The altcoin’s opening price on this date last year was $3,848, almost three times higher than its current value.
In addition, Ethereum is coming off a significant price drop, having lost 26 percent of its $1,773 value on September 10.
Experts believe that large investors in Ethereum are to blame for the cryptocurrency’s recent decline, despite the fact that the market’s unpredictable volatility has caused price drops for the cryptocurrency and other digital currencies.
Collectively, the Ethereum Whales dump
Santiment, a crypto market intelligence platform, posted on Twitter on October 16 that Ethereum sharks and whales had been selling their holdings of the altcoin for five weeks.
Based on the cryptocurrency’s current trading price, these large investors sold off 3.3 million ETH tokens, or $4.3 billion, according to the released data.
In just the past five weeks, #Ethereum’s shark and whale addresses, which hold 100 to 1 million ETH, have lost 3.3 million ETH. Coins that were dumped amount to about $4.2 billion. Based on these key stakeholders’ actions, the asset’s price has fluctuated against #Bitcoin. https://t.co/1L2iGaoxzg
— Santiment (@santimentfeed) October 16, 2022
Those who have between one million and one hundred thousand ETH coins are considered to be Ethereum sharks and whales.
This development reaffirms the thesis that crypto whales—or the largest investors—have a significant impact on the market through their actions of accumulation and dumping.
It is essential to keep in mind that the cryptocurrency bled further as its price plunged during the time Ethereum holders were selling off their assets.
Not Yet Time To Panic
Although things are not looking good for Bitcoin’s main rival, there are positive aspects to this development, according to some experts.
According to some analysts, the same people who sold their Ethereum holdings might try to get the asset’s price higher than it was a month ago.
The ETH sharks and whales may attempt to buy back the assets they sold now that they own a smaller number of tokens than they did when it was trading for $1,400.
As Coincodex forecasts the cryptocurrency’s fall to $1,221 over the next five days, this may end up being the scenario desired by holders of ETH.
The 30-day prediction puts the ETH trading price at $909.14 in November, indicating that the cryptocurrency will face additional challenges in that month.