For 3 days, before ETH broke $250, whales moved 700,000 Ethereum.
The move could signal a pending top for ETH and whales are orchestrating an exit.
Ethereum (ETH) opened the week at a value of $234 and was trading below $250 until yesterday when news broke that US banks can now offer crypto custody solutions to their customers. The bullish news resulted in both Bitcoin and Ethereum breaking the crucial resistance zones of $9,500 and $250 respectively.
Whales Moved 700k ETH Before Ethereum Broke $250
Before Ethereum broke $250, all technical indicators were clear that a move by ETH to break this zone was imminent. At the same time, and for three days before the move above $250, the top 100 Ethereum whales moved 700,000 ETH. This translates to approximately $184 Million using Ethereum’s current value of $264. This movement of 700,000 ETH by Ethereum whales was captured by the team at Santiment via the following tweet.
Nearly 700K $ETH were moved by top 100 whales in the past 3 days. Over this time, the combined balance of the top 100 non-exchange ETH addresses shrank by almost 700K ETH, or about ~$182.7M. This was likely pre-pump positioning & a forewarning of the pump. https://t.co/mcqQYGbZGdpic.twitter.com/pM3fM6TzwC
Are Whales Preparing to Sell Ethereum at a New Local Top?
According to the Tweet by the team at Santiment, the 700,000 Ethereum by ETH whales was moved as ‘pre-pump positioning and a forwarning of the pump’. To note is that the Ethereum upgrade of ETH2.0 was delayed once again and a new estimate pushes the launch to early November.
Connecting the dots to the movement of 700,000 ETH, it could be that Ethereum whales are positioning themselves to sell ETH at a local top and before the upgrade begins in November. The break of $250 by Ethereum, could be the beginning of its journey to $290.
Binance Launches Ethereum Quarterly Futures
Furthermore, the crypto exchange of Binance has launched Ethereum Quarterly Futures with the first batch of contracts expiring on September 25th. Additionally, traders can use a maximum of 75x leverage to speculate on the future price of Ethereum between now and the expiration date.
Judging by the fact that Binance futures has become the preferred derivatives platform, it might be prudent to conclude that ETH will hit a local top before the expiration of the Etheruem contracts in September. Therefore, the movement of 700,000 ETH might be foreshadowing a continual push up by Ethereum and a possible dump before ETH2.0 goes live.
As with all analyses of Ethereum, traders and investors are advised to use adequate stop losses and to use low leverage to protect trading capital.