Market analysts say that despite millions of selling pressures, Ether is forming a breakout to above $3,700 due to an emerging bull flag.
Despite significant sell-offs from early investors amounting to millions, leading industry analysts suggest Ether (ETH) is positioned for a potential price breakout.
A long-dormant whale holding substantial Ether holdings has reentered the market after more than eight years of inactivity.
Dormant Whale Sparks Selling Pressure
According to on-chain analytics firm Lookonchain, this whale, who accumulated 398,889 ETH at an average price of $6 (currently valued at $1.34 billion), began selling after Donald Trump’s recent election victory. In a Nov. 22 X post, Lookonchain noted:
“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).”
Despite this selling pressure, Ether’s price rose over 7.5% in the past week, trading above $3,369 as of 10:09 am UTC, according to Cointelegraph.
Many investors are optimistic about Ether’s trajectory, especially given its correlation with Bitcoin. BTC recently surpassed $99,000 on Nov. 22, achieving the best monthly performance in crypto history with a 40% rise during November.
Analysts believe Ether could climb toward $3,700, revisiting resistance levels, even as sell-offs from whales and early investors continue.
In addition to the whale, Interchain, a Cosmos developer and early participant in Ethereum’s 2017 ICO, has also sold significant amounts of ETH.
On Nov. 22, the Interchain wallet sold 3,000 ETH worth over $10.1 million, bringing the total Ether sold since April 2024 to 21,600 ETH, worth over $95 million, at an average price of $2,591, according to blockchain analyst EmberCN.
The address still retains more than 17,000 ETH, valued at $57 million, per Arkham Intelligence data.
The actions of large holders, or whales, often exert considerable influence on cryptocurrency prices, particularly when sizable amounts are sold on open markets.
Bullish Sentiment Remains
Despite ongoing selling pressure, Ether is showing signs of a breakout. Pseudonymous analyst Rekt Capital wrote in a Nov. 21 post on X:
“Ethereum is currently breaking out from its short-term Bull Flag. Confirmed breakout would see ETH revisit the ~$3700 resistance above.”
Bull flags, a bullish chart pattern, are commonly used by traders to predict upcoming price rallies. As Ether continues to exhibit strength, market watchers anticipate a test of the $3,700 resistance level.