Whales Sell 230,000 ETH in a Week as Traders Question Ethereum’s Next Move

Ethereum has experienced a significant price decline over the past week, with the value of ETH dropping by nearly 15 percent. The cryptocurrency is currently trading just above the $3,000 mark. This downward price movement occurred in the wake of a concentrated selling spree by large holders, commonly referred to as "whales."

Whale Activity Drives Price Decline

Data from analyst Ali Martinez indicates that these major players sold approximately 230,000 ETH between November 9 and November 17. Wallets holding between 1,000 and 10,000 ETH saw their collective balance decrease from 14.4 million to 14.17 million tokens. This substantial selling activity directly coincided with the price of ETH falling from around $3,600 to its current trading level. Such large-scale sales from a limited number of entities can exert considerable downward pressure on an asset's price.

Stagnant Retail Demand and Network Growth

In parallel with the whale selling, new user growth on the Ethereum network has remained flat. An analyst from CryptoQuant, PelinayPA, reported that new depositor activity is showing no signs of increase. This metric is a key indicator of retail investor demand. The data suggests that even when ETH's price approached $4,000 in the recent past, the number of new users engaging with the network did not rise. A lack of broader retail participation can lead to a market that feels top-heavy. Historical market cycles have often shown that Ethereum requires significant retail interest to sustain a lasting price increase.

Market Outlook and Support Levels

Traders are now closely monitoring key price zones for potential support. The next significant level of interest is situated near the $3,000 mark. If the selling pressure from whales persists, the price could face further declines and test lower values. Conversely, a cessation of large sell orders might provide an opportunity for a short-term price recovery. The current market dynamics highlight the significant influence that a small number of large holders can wield over the direction of the cryptocurrency's price.