The unrealized profits of Ethereum holders with large wallets, holding between 10,000 and 100,000 ETH, have risen to levels recorded at the peak of the previous “bull” cycle in November 2021. This data was released by analysts at CryptoQuant, indicating a potential shift in market sentiment.
This is reported by Finway
Increase in Whale Profits and Possible Market Implications
A significant rise in unrealized profits among medium-sized Ethereum whales traditionally serves as a signal of increased risk of profit-taking. Similar situations in the past have often ended with a wave of selling or partial profit realization by major players.
“Historically, such levels of unrealized profits have often been accompanied by increased selling pressure or profit-taking activity, as large holders sought to lock in gains,” the report states.
At the same time, experts emphasize that this does not always lead to an immediate correction. They note that the market is at a critical stage of the cycle, where changes in investor psychology and whale actions can significantly impact the future price direction.
Price Dynamics After the Fed’s Decision and Predictions
Bybit partner Lennart Snyder pointed out the slight increase in the value of Ethereum following the Federal Reserve’s decision to lower the interest rate by 0.25%. According to him, the asset’s price tested a crucial resistance level around $4630. Breaking through this mark could trigger a new “bullish” impulse, potentially reaching $4800.
As of today, Ethereum is trading near the $4600 mark.
It is also worth noting that analysts at Citigroup previously predicted a possible decline in the price of Ethereum to $4300 by the end of the current year.