Just as Ethereum price has been showing strength above $3,500 levels, selling by Ethereum whales picked up once again. The heavy ETH offloading to exchanges by whales has caught investors’ attention on whether the profit-booking begins even before reaching $4,000. Notably, Ethereum co-founder Jeffrey Wilcke also dumped a staggering 20,000 ETH worth $72.5 million.
Ethereum Price Breakout to $4000 Faces Headwinds
Popular crypto analyst Rekt Capital shows the latest ETH attempt to breach the crucial $3,700 resistance. The analyst added that Ethereum price needs a strong weekly close above this level to confirm a breakout. Only after this, ETH Price rally to $4,000 and beyond can continue.
Rekt Capital described the recent ETH price action as a “picture-perfect rejection” from the resistance, emphasizing that Ethereum is not ready to break out just yet.
Another popular analyst CrediBULL Crypto points out a critical resistance level in the ETH/BTC pairing. With the recent upward momentum, this pair is approaching the first “trouble area”. The analyst suggests that a rejection at this point, coupled with a potential 10% correction in Bitcoin, could push Ethereum price toward a significant buy zone between $2,700 and $2,800.
While long-term spot holders may opt to hold through this short-term volatility, CrediBULL emphasizes that traders should watch the $2,700-$2,800 range closely for potential entry opportunities.
One thing that brings some optimism is the rise of ETH’s funding rates. Funding rates, a crucial indicator of sentiment in the futures market, have seen a notable rise in recent weeks. This uptick signals growing bullish momentum among traders and investors as Ethereum’s price continues its upward trajectory.
ETH Whale Dumping on the Rise
Ethereum co-founder Jeffrey Wilcke made headlines today after transferring 20,000 ETH, valued at $72.5 million, to the Kraken exchange. The move coincided with an Ethereum price rally above $3,500.
This is the fourth major ETH transfer by the Ethereum co-founder this year in 2024. So far he has offloaded 44,300 ETH, worth approximately $148 million, at an average price of $3,342 per token. On the other hand, Ethereum co-founder Vitalik Buterin has been selling meme coins off-lately.
Furthermore, Spot on Chain reported that another significant Ethereum sale has been reported as Winslow Strong, director of the Qualia Research Institute, transferred 9,380 ETH, worth $33.7 million, to Coinbase just two hours ago.
This move follows a broader trend of liquidation by Strong, who has sold a total of 14,233 ETH, worth $48.8 million, since ETH price began its recovery in early November.
As of press time, ETH price is trading 1.27% down at $3,570 with a 32% drop in daily trading volumes moving under $30 billion. As per the Coinglass data, the 24-hour liquidation has shot up to $32 million, with $19 million in long liquidation and $13 million in short liquidation.
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