The second-largest cryptocurrency in the world, Ethereum (ETH), may see a price decline as whales actively seek to profit from its recent gain above $2,300. Though there is still cautious optimism in the market as a whole, worries about large holdings selling could drive down the price of ETH.

Ethereum’s price has benefited from the recent bullish momentum in the international cryptocurrency markets, which was sparked by Bitcoin’s rise above $43,000. Thanks to its large development community, broad adoption, important role in decentralized finance (DeFi), and several blockchain applications, Ethereum maintains a unique market position.

Whales Stealing Money Araises Doubts

According to cryptocurrency researcher Ali Martinez, whales began profiting as soon as Ethereum surpassed the $2,300 mark. Large holders’ aggressive efforts to lock in profits give rise to worries about possible sell pressure in the upcoming weeks.

The expert presented a negative scenario in which Ethereum may retest the $1,555 support level. If selling pressure doesn’t let up, ETH can drop to $1,460 in the following two months. Even though these forecasts are conjectural, they show how susceptible Ethereum’s price is to large whale behavior.

Though prospective sell-offs remain a worry, general market sentiment is cautiously hopeful. This mood allows the opportunity for the price of Ethereum to rise further, contingent on different market dynamics and outside influences.

DeFi and NFT Activities’ Effect on Gas Fees

On the Ethereum blockchain, growing interest in decentralized finance (DeFi) and non-fungible tokens (NFTs) has increased network fees. DeFi and NFT trades are complicated smart contract executions that use gas, which results in protracted periods of high fees.

Although Ethereum’s exorbitant gas fees pose difficulties for NFT producers and gatherers, new approaches such as Layer 2 scaling and gas optimization give hope for a more affordable and easily accessible NFT ecosystem. Since 2020, there has been a significant increase in DeFi and NFT activity, which has led to a lot of transaction activity and constantly high gas fees on the Ethereum network.

As of right now, minting an NFT on Ethereum typically costs $100 in gas fees, though this might vary depending on factors like network congestion, gas rates, and the intricacy of the smart contract. The continuous progress in gas optimization and scalability solutions is intended to tackle these issues and improve Ethereum’s network’s overall performance.