Ethereum Whales’ Unrealized Profits Hit 2021 Highs — Is a Sell-Off Ahead?

A certain cohort of Ethereum investors are sitting on profit levels not seen since the peak of the last bull run. An analysis by CryptoQuant revealed that these investors are mid-sized whales holding between 10,000 and 100,000 ether (ETH).

Whales heavily influence the crypto market due to their large holdings. So, the surge in their unrealized profit levels raises the question of impending selling pressure in the coming weeks. That is, if they decide to lock in their gains.

ETH Whale Unrealized Profits Surge

The level of unrealized profits seen by mid-sized Ethereum whales last peaked in November 2021, when ETH hit its all-time high above $4,660. Historically, unrealized profit levels have preceded increased selling pressure or profit-taking activity.

The current state of the market does not signal an immediate correction. However, it underscores a crucial stage in this bull cycle where investor behaviour could significantly drive price action.

It is worth mentioning that analyst predictions may not pan out as expected due to ETH’s growth trajectory this cycle. Ether has mostly underperformed during this bull cycle. Investors thought all hope was lost until July, when the asset began to climb again. 

Will Investors Sell Now or Later?

Other top crypto assets, including bitcoin (BTC) and Binance Coin (BNB), have rallied to and surpassed their previous highs months ago. In contrast, ether’s journey has been rocky. Despite reaching a new high three weeks ago, it has been unable to break through the $5,000 resistance level. As a result, it is believed that ETH still has more room to rally before the bull cycle is over.

If ETH can crush significant price milestones in this cycle, investors may be willing to hold onto their assets in anticipation of more gains. This suggests that although the Ethereum market will likely experience intense selling pressure, it may occur much later in the cycle, rather than over the next few days.

Moreover, the crypto market has historically recorded minimal returns in September. With October and November being among the most bullish months for the market, investors have more reason to believe that ETH may be on the verge of a massive breakout. Hence, selling now at less than $5,000 could be a wrong move.

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