As the FTX hacker continues to drain massive ETH holdings, it awakens whale investors to exit their positions.
A continuous dump of Ethereum may push Ethereum to its worst levels, as seen in May’s crash.
The crypto market has witnessed several impactful events that have plunged multiple digital assets to the bottom. From the last few weeks, there has been intense selling pressure in the global crypto market due to the sudden collapse of FTX, which forced investors to liquidate massive positions and exit the market due to unpredictable price fluctuations. The 2nd largest cryptocurrency, Ethereum, accelerates its bearish bloodbath as its price seems to be impacted mainly by massive fund movements by whale holders.
ETH Price Tumbles Down As Dormant Whale Wakes Up!
FTX’s collapse is not the only reason for stopping Ethereum from trending upward as the FTX hacker gains a significant role in controlling ETH price. The FTX drainer address holds over millions of dollars worth of Ethereum, which is enough to lead the asset to the worst price levels.
Coinpedia reported that the FTX hacker who stole over $600 million from the crashed crypto exchange is continuously swapping stolen Ethereum for cash-out purposes. Recently, blockchain tracker, PeckShieldAlert, reported that the hacker swapped around 15K Ethereum (~$16.78 million) in exchange for renBTC, which further converted into 1023.64 Bitcoin.
A whale with 720K $ETH ($817M) switched his ETH wallet just now.This whale has been dormant for 2 years.He had 9 wallets before, each holding 80K $ETH, and now he has 8 wallets, each holding 90K $ETH. pic.twitter.com/iVCCgV2qjQ
— Lookonchain (@lookonchain) November 21, 2022
Moreover, an on-chain data provider, LookIntoChain, mentioned an Ethereum address that was inactive for almost two years has recently made huge movements of ETH holdings. The dormant address has moved 720K Ethereum (~$817 million) to a new wallet address, hinting at a plan of a massive selloff.
Moreover, Whale Alert tracked a movement of 400K Ethereum from several crypto exchanges and individuals amid the dump situation. According to on-chain data, whales moved over 300K Ethereum from the crypto exchange Upbit to different wallets.
Ethereum May Drop To An Extreme Fear Zone
Following the massive liquidation of Ethereum, the asset is trading in a crucial fear zone, which may soon trigger a sharp fall in the ETH price chart. A pseudonymous crypto strategist, 0xStacker, predicted that Ethereum might drop to $1,015 if the current selling pressure continues. If bears take control of Ethereum, its price can fall further and take support at $840.
However, the analyst believes this price momentum can be an excellent opportunity to invest in DCA (Dollar Cost Averaging) to pull out a significant profit in the upcoming bull run.
Twitter : @0xStacker
Amid the ongoing dump situation, the DeFi activity on Ethereum has dropped rapidly as DefiLlama showed that the total value locked (TVL) in dApps on Ethereum declined by 4% to $23.8 billion.
Moreover, on-chain analyst firm, Coinglass reported that $40 million worth of ETH future trades (long position) were liquidated in the last 24 hours, which is expected to come after a significant loss for ETH traders during the turmoil.
At the time of writing, Ethereum trades at $1,114, with a drop of over 5% from yesterday’s performance. The RSI-14 has rapidly dropped to 34-level as Ethereum trades below its long-consolidated zone after breaking the $1,181 barrier.
If the FTX hacker cashes out all his ETH holdings, Ethereum may continue its death rally further and drop below its crucial support zone of $1,075. After that, the ETH price will likely stabilize near $900 before igniting a fresh surge by the beginning of 2023.
This article has been originally published at: https://coinpedia.org/ethereum/this-is-whats-barring-ethereum-from-a-bull-run-eth-holders-to-get-max-pain-by-december/