An Ethereum whale recently secured a substantial profit of nearly $10 million after divesting a significant portion of their Ether holdings. This profit-taking coincided with Ethereum concluding its impressive eight-day winning streak, experiencing a more than 3% decline on Tuesday. Despite this short-term correction and profit realization, long-term holders continue to demonstrate strong bullish conviction, indicating an underlying confidence in Ethereum’s future.
Ethereum Whale “0x8C08” Exits with 38% Gains
On Tuesday, the Ethereum address “0x8C08…” sold 8,005 ETH for approximately $30.03 million, at an average price of $3,751, according to data from Lookonchain. Just two weeks prior, this whale had acquired 9,582 ETH at an average entry price of $2,725, representing an initial investment of $26.11 million. This recent sale yielded a profit of $9.87 million, equating to a 38% return in under 14 days. The wallet still holds 1,577 ETH, valued at around $5.96 million, suggesting a strategic partial exit rather than a complete liquidation. This also implies that the whale anticipates continued bullish momentum for Ethereum, especially after gaining over 50% month-to-date.
Evidence of Strategic Profit-Taking
Further evidence of strategic profit-taking is visible in Glassnode’s “Cost Basis Distribution Heatmap,” which highlights buying clusters based on average acquisition prices. The red band around the $2,520 level, representing high-volume buying in early July, has recently faded. This visual shift indicates that many holders, now sitting on considerable unrealized gains, have begun to lock in profits. However, wallets within this price range still collectively hold nearly 2 million ETH, suggesting that the majority of holders are not selling off their entire positions. Glassnode notes that this behavior implies that fresh demand is effectively absorbing the selling pressure, which is a sign of probable long-term bullish conviction rather than outright distribution.
Ethereum Overbought Signals a Potential $3,000 Correction
Ethereum’s impressive eight-day winning streak has pushed its 14-day Relative Strength Index (RSI) into overbought territory, currently near 78. Historically, such readings have often preceded short-term pullbacks, similar to the 18.6% correction ETH experienced in late May after a comparable RSI spike. A similar scenario appears to be unfolding now. The initial signs of a cooldown emerged on Tuesday, with ETH retreating from its recent high near $3,800. The price could potentially revisit the $3,000–$3,200 range by August if momentum continues to fade. This range aligns with the 20-day exponential moving average (EMA), a crucial support level.
Long-Term Outlook Remains Favorable
Even a move towards $3,000 would keep Ethereum comfortably above its multi-year ascending trendline, as depicted on the weekly chart. As long as ETH maintains its position above this long-term trendline, the price structure remains favorable for continued upside. This could pave the way for a period of reaccumulation before Ethereum attempts to break through the $3,800–$4,100 resistance area and beyond. Some analysts are even anticipating the ETH price to reach $8,000 in the coming months, indicating strong confidence in its long-term potential.
