Ethereum Founders Liquidate 1,700 ETH Amid Whale Exodus: Crucial Support Test Ahead

Amid a tense crypto market climate, Ethereum founders have reportedly liquidated 1,700 ETH for $2.7 million in USDC. According to a recent tweet by CryptoBusy, a market analyst, this move parallels an ongoing trend observed among Ethereum whales, who, since February 2023, have significantly reduced their holdings.

Ethereum currently hovers near a historically significant 480+ support level, as indicated by the chart from CryptoBusy. The latest data presents the cryptocurrency fluctuating between $1,550 and $1,650. The chart further emphasizes the coin’s movement within this range, marking a potentially decisive moment in terms of bounce or breakdown from this vital support level.

The chart spanning from March 2022 to early 2024 showcases notable price movements. Ethereum witnessed a sharp decline around March 2022, followed by periods of consolidation and subsequent uptrend till early 2023. Post this bullish phase, the coin has been on a downtrend, reaching its current position near the crucial 480+ support.

Moreover, a chart shared by analyst ali_charts delivers insights into Ethereum’s movement from February 2023. Whales, or holders of significant quantities of Ethereum (ranging from 10,000 to 100,000 ETH), have showcased a trend of offloading. This results in the redistribution or sale of over 5 million ETH, an astonishing $8.5 billion in value. 

Notably, the blue-shaded region in the chart, representing Ethereum’s price, has witnessed a steady decline, paralleling the reduction in whale holdings. The sharp dips indicate periods of intense selling by these prominent stakeholders.

With charts from multiple sources highlighting Ethereum’s journey over the past year and its critical position now, the situation is tense. Significant offloading by whales and the reported sale by Ethereum’s founders hint at caution and a possible lack of confidence in the asset’s short-term prospects. 

Ethereum trades at $1,589.46, marking a 1.73% decrease over the past 24 hours. As Ethereum hovers near its historical support level, the next few weeks could prove pivotal in shaping its future market trajectory.