- Ethereum fell in value after a crypto whale sold 7,000 ETH at a $16M loss.
- Market tension and bearish pressure are growing, as revealed by the RSI and MACD indicators.
- Many investors are monitoring if ETH can continue to support itself above $2,400 while fear is growing.
After a significant crypto whale sold 7,000 ETH on May 19 for $16.88 million, the price of Ethereum dropped significantly. Lookonchain claims that this whale acquired 13,479 ETH from Binance between December 5 and January 13, while each ETH was going for around $3,622.
This implies the investor paid $48.82 million in ETH when prices were much higher and made a loss of $16.28 million by selling at a lower price.
Whale Still Has Over $15M ETH Unsold
The situation is particularly remarkable since the whale retains a balance of 6,479 ETH worth almost $15.66 million today. A recent transaction on the blockchain, highlighted by tracking tools, shows the whale sent 7,000 ETH back to Binance only an hour before the post was made by Lookonchain.
Source: X @lookonchain
This event signals panic selling or a strategic exit from investing in ETH after holding it for months, while prices were down
This sale quickly influenced the market. If you look at the Ethereum daily chart on TradingView, the ETH price is currently at $2,498. It confirms a sizable drop from near $2,800 in the last few days of March. Ethereum opened on May 19 at $2,499; it improved slightly by the end of the day to finish at $2,498.9.
Indicators Point at A Risk of Increased Tension in the ETH’s Market
Technical indicators signal that there is more tension in the market, with the RSI having dropped from above 70 two days ago to 67.76, suggesting that momentum declined in the market. An appropriate conclusion to this is that buying force is being reduced, and there are chances of a fall in the token’s price.
Source: TradingView
Meanwhile, the MACD (Moving Average Convergence Divergence) is pointing at a potential bearish trend, as the blue line is seen crossing toward the orange signal line in a downward direction.
In addition to this, trading volume went down, with over 15,000 ETH traded in a single day. This could be because more selling happened after the whale sold, as the news had a significant impact on investors.
The sale of a lot of assets, even at a loss, from holders is considered by many as a sign of fear in the market. Often, even those with less money will also notice and choose to sell as well.
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