Crypto: Ethereum Targets $3,700 Despite A Hemorrhage Of $1.3 Billion!

Ether challenges the laws of the crypto market. While massive selling pressures exert considerable weight on its price, the second-largest cryptocurrency by market capitalization appears unperturbed. Investors are witnessing a captivating scenario where even a colossal sale of $1.3 billion is not enough to curb its rise towards $3,700. But how can this resilience be explained?

Massive Sales, but a Persistent Upward Trend

The numbers speak for themselves. An inactive crypto whale for eight years decided to liquidate a significant portion of its Ether holdings. This entity alone sold 73,356 ETH, approximately $224.42 million, out of a total of 398,889 ETH accumulated at a negligible price of $6 per unit.

This sale added significant pressure on the markets, amplified by other major holders such as the Interchain developer, who has sold over 21,600 ETH since April 2024.

Despite this avalanche of sales, Ether has not only resisted; it has climbed 7.5% in a week, surpassing the $3,369 mark according to CoinmarketCap.

This momentum can be explained by a well-known phenomenon: the correlation between Ether and Bitcoin. With Bitcoin reaching $99,000 in November, the appetite for leading altcoins like ETH has grown.

Behind this robustness also lies an important technical signal: the emergence of a “bull flag.” This chart pattern, favored by traders, indicates a potential breakout that could take Ether to the key resistance level of $3,700.

A Crypto Market Under Pressure, but Promising Prospects

However, not everything is rosy in the Ethereum ecosystem. The massive selling by whales and ICO investors highlights a recurring issue: the disproportionate impact of large holders on crypto prices.

These actors, when selling in bulk, trigger increased volatility, creating both opportunities and risks for small investors.

Yet, optimism prevails. According to analysts like Rekt Capital, the ongoing breakout of the bull flag in the short term suggests a scenario where Ether could revisit $3,700 or even higher.

This prospect is attracting new investors, convinced that crypto ETH still has potential to exploit, especially due to its growing role in decentralized finance (DeFi) and NFT ecosystems.

Moreover, the macroeconomic environment is working in favor of cryptocurrencies. Investor confidence has strengthened, supported by record inflows of $9.7 billion into stablecoins, suggesting a massive influx of capital into digital assets like Ether.