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Ethereum’s recent surge past $3,470 has been marked by significant profit-taking from major holders, signaling a potential shift in market dynamics.
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Two prominent Ethereum whales have collectively sold over $528 million worth of ETH, highlighting cautious sentiment amid a strong technical backdrop.
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According to COINOTAG, these large-scale sales reflect strategic partial exits as Ethereum approaches overbought conditions, despite ongoing retail enthusiasm.
Ethereum whales offload $528M amid rally above $3,470, signaling cautious profit-taking while price maintains strong technical support and bullish momentum.
Ethereum Whale Activity Signals Strategic Profit-Taking Amid Rally
Ethereum’s price rally has attracted considerable attention, especially as it climbs above the $3,470 mark. However, beneath this bullish momentum, significant profit-taking by large holders, or “whales,” is becoming evident. Two major investors have sold a combined 178,080 ETH, equating to roughly $528 million, according to recent on-chain analytics. This movement suggests a strategic approach to securing gains while maintaining exposure to further upside potential. Notably, one whale, Trend Research, purchased 184,115 ETH at an average price of $2,118 and recently sold 79,470 ETH at an average of $3,145, locking in substantial profits while retaining a sizable position.
On-Chain Data Reveals Partial Exits Amid Overbought Market Conditions
On-chain data indicates that another significant investor acquired 132,536 ETH at an average price of $2,518 between June 11 and June 22, subsequently selling 98,610 ETH at an average price of $2,819. This pattern of partial exits aligns with technical indicators signaling overbought conditions, such as the daily Relative Strength Index (RSI) reaching 83.46. The elevated RSI suggests potential near-term exhaustion, prompting these whales to reduce risk exposure while the price remains elevated. Despite these sales, both investors continue to hold substantial ETH positions, reflecting confidence in Ethereum’s longer-term prospects.
Technical Analysis Supports Continued Bullish Momentum Despite Distribution
Ethereum’s price action remains structurally robust, trading well above key exponential moving averages (EMAs), including the critical 200-day EMA. The recent breakout above long-standing resistance levels underscores sustained buying interest and momentum. A spike in trading volume accompanying recent price candles indicates distribution phases, where late buyers enter the market as whales offload portions of their holdings. This dynamic creates a complex interplay between profit-taking and fresh capital inflows, which could sustain the rally if ETH maintains support within the $3,200 to $3,300 range.
Market Sentiment and Future Outlook Amid Whale Movements
The coordinated selling by large holders introduces a nuanced perspective on Ethereum’s near-term trajectory. While retail investors and other whales continue to accumulate, the $528 million in ETH sales highlight a cautious approach by smart money to lock in profits. This behavior may temper excessive bullishness and introduce volatility as the market digests these sizable transactions. Monitoring key support levels and volume trends will be essential for assessing whether Ethereum can sustain its rally or face a corrective phase. Investors should remain vigilant to technical signals and on-chain data to navigate the evolving landscape effectively.
Conclusion
Ethereum’s recent price surge has been accompanied by significant profit-taking from major holders, reflecting a prudent balancing of risk and reward. While the technical structure remains strong, the partial exits by whales underscore the importance of cautious optimism. Maintaining support above $3,200-$3,300 will be critical for the continuation of the rally. As smart money secures gains, market participants should closely watch volume and momentum indicators to gauge Ethereum’s next moves in this dynamic environment.
