The recovery in Ethereum prices has hit a wall, with the cryptocurrency trading at $3,022 on Saturday, approximately 40% lower than its peak this year. This stagnation comes amid a broader sense of trepidation within the crypto market, particularly following the significant sell-off by a prominent whale.
On-chain metrics reveal that this major investor transferred 18,000 ETH, valued at around $54 million, to Bitstamp. This whale has been a long-time accumulator, amassing a total of 154,076 ETH over the past eight years. After this latest transaction, he has sold approximately 87,824 tokens and currently retains 66,252 ETH, which is now worth more than $201 million. This unknown individual has emerged as one of the largest holders of Ethereum.
Additionally, another whale, known for participating in the Initial Coin Offerings (ICO), disposed of 20,000 ETH worth about $58 million. This investor received a total of 254,908 ETH during the ICO.
Despite these large sell-offs, there are factors that could potentially support Ethereum”s price in the near future. Notably, while some whales are offloading their tokens, Tom Lee”s BitMine has been actively accumulating. Over the past month, the company has purchased more than 316,620 ETH, elevating its total holdings to approximately 3.629 million ETH, valued at over $10.9 billion. This accumulation trend is particularly significant as it continues amid ongoing bearish market conditions.
Upcoming Fusaka Upgrade as a Positive Catalyst
Another critical development that could influence Ethereum”s price is the upcoming Fusaka upgrade, which is set to launch on December 3. This upgrade aims to enhance the network”s capabilities, focusing on scalability, node resilience, and efficiency through the activation of 11 Ethereum Improvement Proposals (EIPs). Unlike previous upgrades, the changes from Fusaka will be primarily backend improvements, potentially unnoticed by the average user.
Arthur Hayes, a well-known figure in the crypto space, recently lauded Ethereum”s ongoing dominance, particularly highlighting its 70% market share in the decentralized finance (DeFi) sector.
Technical Analysis Reveals Potential Risks
On the technical front, the daily chart indicates that Ethereum”s recent rally has faltered at the psychological level of $3,000. The cryptocurrency is forming a bearish flag pattern, which suggests a likelihood of further downside movement. Additionally, Ethereum has exhibited a death cross pattern and currently trades beneath the Supertrend indicator, hinting at possible declines in the near term, with potential targets around this month”s low of $2,620.
Conversely, Ethereum has also formed a falling wedge pattern, typically associated with bullish trends. Should this pattern play out positively, traders will be watching closely for a potential rally to the $3,500 mark.
