The Ethereum market saw its valuation drop by 10 percent during the previous week as cryptocurrencies experienced heightened price volatility. Since reaching $1,900 briefly Ethereum drops below this level and faces challenges to recover the mark which makes investors uneasy.
The crypto market uncertainty affects ETH as part of its normal price fluctuation pattern. New evidence shows investors are changing their views especially about big Ethereum transactions.
Ethereum Experiences 63.8% Decline in Whale Activity
Crypto expert Ali Martinez shows Ethereum’s network experienced a major drop in large-value transfers after February 25 resulting in a 63.8% decrease in such transactions. Based on his findings Ethereum whales the largest crypto investors have shown reduced buying behavior.
Large whale investors either need to reallocate their funds or exit the market since they are spending less ETH. During the past two weeks whales sold 760,000 ETH that has increased market downturn pressure.
An original ETH holder liquidated the last of their tokens and this action intensified market worries. According to Lookonchain data the major account of an old Ethereum investor sold 2,001 ETH coins worth 3.82 million US dollars. The seller revealed themselves as an investor who started buying 5001 ETH units last 2017 at $277 a piece for $1.38 million.
This Ethereum holder successfully turned their past month investments into $8.66 million even while the bull market reached its peak values of $4,878. At its highest point they held over $23 million in profits.
The ETH community keeps its faith intact as it awaits the features of the upcoming Pectra update on Hoodi testnet. The teams successfully implemented the upgrade system enhancements but investors will need to see if these changes restart the buying momentum. A significant ETH improvement package debuts on April 30 based on Prague and Electra integration.
The Ethereum ecosystem stays focused on this upgrade because it plans to begin at slot 11,599,872 and will likely make a new price increase possible. The upcoming launch depends fully on the decision makers during the next All Core Developers Execution meeting which creates uncertainty in the launch schedule.
The next weeks will tell if ETH regains investor faith while handling current market volatility.