Leading crypto analyst Ali (@ali_charts) cautioned that Ethereum’s recent rally to over $2,300 could soon reverse as large ETH holders start taking profits. He warns the increased selling pressure from these “whales” could halt Ethereum’s uptrend.
Ethereum Hits New Highs
Ethereum recently hit new all-time highs, surpassing $2,300 as enthusiasm builds for the long-awaited Merge upgrade to proof-of-stake consensus. This enthusiasm has led to heavy buying that propelled ETH to levels not seen since last summer.
However, Ali notes that this surge has also lined the pockets of whales. As he stated, “As #Ethereum surpassed $2,300, $ETH whales began to book profits.”
Taking Profits
Ali’s data shows that these large ETH holders have already begun realizing some of their gains. He notes “This surge in selling pressure might soon start to impact the #ETH price.” If enough whales cash out, it can overwhelm buying demand.
This selling pressure comes at a questionable time given the crypto market turbulence amid the FTX collapse. His warning seems to be that Ethereum’s run could soon stall out or possibly even reverse if heavyweight investors pull back en masse to lock in profits from the recent run-up.
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The question is whether buyer demand will remain strong enough to absorb this whale selling without major downside impact. But Ali makes clear that increasing signs of holders taking money off the table poses an emerging headwind for Ethereum.
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