The price increase of Ethereum to $3,400 has led to significant sell-offs by major holders, potentially indicating short-term weakness in the market.
Analysis of Major Holder Sell-offs
Ethereum's price surged above $3,400, accompanied by a sell-off totaling $528 million. In the past three days, two major holders sold 178,080 ETH, securing substantial profits. Despite the ongoing upward trend in price, these sell-offs may signal short-term exhaustion in the market.
Trend Research's Strategy
Between February 26 and June 20, Trend Research acquired 184,115 ETH at an average price of $2,118. Recently, they sold 79,470 ETH at an average of $3,145, realizing approximately $250 million in profit. The firm now holds 105,664 ETH worth about $354 million, indicating a strategy to reduce risk without completely exiting their position.
Anonymous Investor's Market Actions
An anonymous whale also contributed to the $528 million sell-off. This investor accumulated 132,536 ETH between June 11 and 22 at an average price of $2,518. They sold 98,610 ETH over eight days at an average of $2,819, securing $278 million. The whale's wallet still retains 35,022 ETH, showing a preference for a phased market exit rather than a complete sell-off.
Despite the sales from major holders, Ethereum's price remains above critical moving averages. However, the rise of the RSI to 83.46 and increased trading volumes suggest potential overbought conditions, while support levels around $3,200-$3,300 may allow the rally to continue.
