Over the past few days, Ethereum (ETH) whales have been steadily selling their coins, impacting the market's momentum. This sell-off surge indicates a desire for profit as Ethereum's price has seen double-digit gains in the past week.
The increasing selling pressure is likely to limit Ethereum's near-term upside. Notably, an early Ethereum ICO participant, holding 150,000 ETH, deposited 3,510 ETH into Kraken following two years of inactivity. Another whale, known for timely sell-offs, deposited 15,000 ETH recently.
Due to these activities, the supply of ETH on exchanges has risen to 21.45 million ETH, worth over $56 billion. Since September 20, a cumulative of 30,000 ETH has been sent to exchanges. Such increased supply signals profit-taking actions that could exert downward pressure on prices.
Data from IntoTheBlock shows a 43% decline in new addresses trading ETH and an 18% drop in active addresses over the past week, indicating reduced network activity. This scenario could lead to lower demand and more selling pressures.
While Ethereum's price recently surpassed the $2,579 resistance level, ongoing whale sell-offs could hinder it from reaching $2,868. Conversely, if these sales stop and new demand emerges, ETH could potentially break past the $2,868 mark.
