Ethereum [ETH] has been attempting a recovery back above $2,000, but it has been facing a setback each time. The altcoin has reclaimed $1,900 after the dip to the $1,850 level as bulls gain momentum.
However, dormant whales seem to be profit-taking or repositioning, while long liquidations have spiked too. Could this potential selling pressure be capping ETH’s price recovery efforts?
Dormant Ethereum ICO hints at selling, liquidations surge
As Ethereum struggles to reclaim $2,000, an Ethereum ICO participant is hinting at selling, but it is yet to be confirmed.
This Ethereum genesis wallet moved the entire 2,680 ETH, worth $5.05 million, to new wallets after 11 years of dormancy. They were moved in two batches of 1,876 ETH and 804 ETH with test transactions of 0.001 ETH.
The whale invested $831 in the 2015 ICO, equivalent to a return of 6,068x as per the current valuation of ETH.
On the other hand, the whale could also be moving for security purposes, bearing in mind the spike in crypto hacks. Some have even affected cold wallets. If this scenario is the case, the selling pressure would be mitigated.
However, a spike in long liquidations reinforces suspicion of further decline or consolidation.
For instance, Machi lost $2.44 million from two positions on Hyperliquid [HYPE]. He still holds $4.36 million in ETH with a floating loss of $68K, only 1.1% away from liquidation. This suggests that more of his long positions could be wiped out.
