Large Ethereum transactions decreased by 63.8% since late February indicating reduced whale activity

Summary

• Ethereum Price Under Pressure Amidst Reduced Large Investor Activity: Ethereum’s price is facing downward pressure, coinciding with a significant 63.8% drop in large transactions since late February, indicating reduced whale engagement.

• Long-Term Ethereum “OG” Investor Sells Remaining Holdings: A prominent early Ethereum investor liquidated their remaining 2,001 ETH for $3.82 million after holding since 2017 and realizing substantial profits, contributing to negative sentiment.

• Pectra Mainnet Upgrade Awaited as Potential Reversal Catalyst: Despite price struggles, the upcoming Pectra mainnet launch on April 30th is anticipated as a potential driver to renew investor interest and spark a price recovery for Ethereum.

Ethereum is navigating a turbulent period as its price has receded by almost 10% in the past week.

Although briefly climbing above the $1,900 threshold, Ethereum has encountered difficulties in sustaining this level and is currently battling to stay afloat above it.

This recent price contraction follows a wider pattern of market instability, sparking worries about Ethereum’s future price direction.

This downward price pressure may be connected to shifting investor perceptions, as on-chain analytics indicate a substantial decrease in large Ethereum transactions.

Large Ethereum Investors Appear to Be Scaling Back Activity

According to recent observations from crypto analyst Ali Martinez, the volume of significant Ethereum transactions has sharply decreased since February 25th, showing a substantial 63.8% reduction.

This contraction points to a considerable lessening of activity from major players, often termed “whales,” on the Ethereum network.

This trend suggests that large-scale investors might be reducing their exposure or strategically shifting their cryptocurrency portfolios.

Notably, data reveals that whales collectively sold off a massive 760,000 ETH in just the last two weeks.

This reduced engagement from large investors is occurring in tandem with the actions of a veteran Ethereum investor who recently divested their remaining holdings.

Updates from Lookonchain disclosed that a long-standing Ethereum holder considered an “OG” in the community, sold their final 2,001 ETH on April 2nd, an amount valued at approximately $3.82 million.

This investor’s journey with Ethereum began in 2017 with the purchase of 5,001 ETH at $277 per coin, totaling $1.38 million.

They maintained their position throughout Ethereum’s significant bull market surge, even as prices peaked at $4,878.

Over the preceding month, this long-term holder initiated selling activity, ultimately realizing a total profit of $8.66 million from their Ethereum investment.

At the highest point of the market, their unrealized gains had reached a remarkable $23 million.

Pectra Upgrade Mainnet Launch Anticipated as Potential Catalyst

Despite the successful completion of the Pectra upgrade on Ethereum’s Hoodi test network, the platform has struggled to generate any sustained price rally.

Now, the market focus is intensely on the upcoming mainnet launch of the Pectra upgrade.

This significant network enhancement combines features from both the Prague and Electra improvement proposals and is currently scheduled for activation on the Ethereum mainnet on April 30th, tentatively set for block slot 11,599,872.

There remains optimism that the implementation of this upgrade on the Mainnet could reignite investor interest in Ethereum and potentially stimulate a more pronounced positive shift in its price.

The definitive timeline for the upgrade is still subject to final confirmation, expected during the upcoming All Core Developers Execution (ACDE) meeting.

Also Read: Evidence Solidifies Ethereum’s Position as the Premier Altcoin Investment

Ethereum is a dominant platform in the decentralized applications space, boasting the largest DeFi ecosystem, substantial TVL and stablecoin reserves, and an unparalleled Layer-2 solution network. In 2024, it generated the highest on-chain revenue of all blockchains, surpassing even Tron and Bitcoin. Its central role in stablecoins, DeFi, and Layer-2 development sets it apart from other…[Read More]

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