Ether is defying the laws of the crypto market. Even though massive selling pressures are weighing heavily on its price, the #2 cryptocurrency by market cap seems unfazed. Investors are witnessing a captivating scenario where even a colossal $1.3 billion sell-off is not enough to stop its rise towards $3,700. But how to explain this resilience?
Massive sales, but a bullish dynamic that persists
The numbers speak for themselves. A crypto whale that has been inactive for eight years has decided to liquidate a significant portion of its assets in Ether. This entity alone has sold 73,356 ETH, or approximately $224.42 million, out of a total of 398,889 ETH accumulated at a ridiculous price of $6 per unit.
This sale has added significant pressure on the markets, reinforced by other large holders such as developer Interchain, which has sold more than 21,600 ETH since April 2024.
Despite this rush of selling, Ether has not only held up, but has risen by 7.5% in a week, breaking through the $3,369 barrier according to CoinmarketCap.
This dynamic can be explained by a well-known phenomenon: the correlation between Ether and Bitcoin. With Bitcoin reaching $99,000 in November, the appetite for top-tier altcoins, such as the crypto ETH, has strengthened.
Behind this robustness also lies an important technical signal: the emergence of a “bull flag”. This chart pattern, appreciated by traders, indicates a possible breakout that could take Ether to the key resistance of $3,700.
A crypto market under stress, but with promising prospects
However, not everything is rosy in the Ethereum ecosystem. The massive sell-off by whales and ICO investors highlights a recurring problem: the disproportionate impact of large holders on the price of cryptocurrencies.
These actors, when they sell en masse, cause increased volatility, creating both opportunities and risks for small investors.
Nevertheless, optimism prevails. According to analysts such as Rekt Capital, the ongoing breakout of the short-term bull flag suggests a scenario where Ether would revisit $3,700, and even higher.
This prospect attracts new investors, convinced that the ETH crypto still has untapped potential, especially thanks to its growing role in the decentralized finance (DeFi) and NFT ecosystems.
Moreover, the macroeconomic environment plays in favor of cryptocurrencies. Investor confidence has strengthened, supported by record flows of $9.7 billion into stablecoins, heralding a massive inflow of capital into digital assets such as Ether.
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