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Despite millions of selling pressure, Ether is staging a breakout to above $3,700 due to an emerging bull flag, according to market analysts.
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Despite heavy sell-off from early investors worth millions, some of the most popular industry analysts believe the Ether (ETH) market price is poised for a price breakout.
A whale, or large investor, has started selling Ether after being dormant for over eight years.
The whale accumulated over $1.34 billion worth of Ether at an average cost of $6 and started selling shortly after Donald Trump’s victory, according to onchain intelligence firm Lookonchain’s Nov. 22 X post:
“A whale that accumulated 398,889 $ETH(currently worth $1.34B) at an average price of ~$6 is selling $ETH again… After remaining dormant for over 8 years, the whale reactivated on Nov 7 and began selling $ETH. So far, 73,356 $ETH($224.42M) has been sold, leaving 325,533 $ETH (worth $1.1B).”
Ether whale investor starts selling Ether. Source: Lookonchain
Despite the selling pressure, Ether price rose over 7.5% during the past week, to trade above $3,369 as of 10:09 am in UTC, Cointelegraph data shows.
ETH/USD, 1-month chart. Source: Cointelegraph
Increasingly more investors are anticipating Ether to rally toward its previous all-time high due to its correlation with Bitcoin (BTC), which crossed $99,000 on Nov. 22, printing the best monthly candle in crypto history, as BTC rose over 40% during November so far.
Related: US Bitcoin reserve during Trump presidency could pump BTC to $1M
Ether set for $3.7k breakout, despite ICO wallet and whale selling pressure
The $1.3 billion whale is not the only investor creating significant selling pressure for Ether’s price.
Cosmos developer Interchain, who was an early participant in Ethereum’s initial coin offering (ICO) in 2017, has also started selling ETH.
The wallet associated with Interchain sold 3,000 ETH worth over $10.1 million on Nov. 22, amounting to over 21,600 Ether, worth over $95 million, sold since April 2024, sold at an average price of $2,591, wrote pseudonymous blockchain analyst EmberCN, in an X post.
Cosmos Network wallet. Source: Arkham Intelligence
The Cosmos Network-labelled address still holds over 17,000 Ether worth $57 million, Arkham Intelligence data shows.
Whales with large holdings can have a drastic effect on the price of the underlying cryptocurrency, especially if the entity decides to sell a large amount of the asset on the open market.
Related: Record $9.7B stablecoin inflows could drive Bitcoin to $100K
Despite the selling pressure, Ether is already staging a breakout, which could see it revisit the $3,700 resistance, wrote pseudonymous analyst Rekt Capital in a Nov. 21 X post:
“Ethereum is currently breaking out from its short-term Bull Flag. Confirmed breakout would see ETH revisit the ~$3700 resistance above.”
ETH/USD, 1-week chart, bull flag breakout. Source: Rekt Capital
Cryptocurrency traders use bull flags as a bullish chart pattern to spot upcoming price rallies.
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This article first appeared at Cointelegraph.com News
