- An Ethereum whale sold 10,070 ETH for $33M, incurring a $1M loss, contributing to Ethereum’s 11% price drop over the week.
- Technical signals like the MACD “Sell” indicator and neutral RSI point to continued downward pressure despite some optimism in derivatives markets.
- 82% of Binance traders with active contracts remain long on Ethereum, reflecting hope for recovery amid market volatility.
Ethereum, the world’s second-biggest cryptocurrency by market capitalization, came under considerable selling pressure throughout the weekend, extending the prolonged decline in its price. One of the most prominent whale investors sold a chunk of their holdings and booked a loss as Ethereum shed more than 11% of its value during the week.
According to Lookonchain, the whale, operating three Ethereum wallets, sold 10,070 ETH for $33 million in stablecoin Dai and incurred a loss of $1 million. This was a notable move, considering the same investor had withdrawn 24,029 ETH—worth $81 million—from Binance just three weeks earlier. Following this latest sale, the whale’s stash was down to 13,959 ETH, worth around $45.48 million.
The selloff wasn’t a one-off incident. Data from blockchain analytics firm IntoTheBlock revealed that net inflows to exchanges surged 791% in the last 24 hours to $338 million, indicating more Ethereum tokens are being transferred to exchanges and likely to be liquidated. Large transactions above $100,000 also jumped more than 70%, indicating increased activity among whales and institutional investors.
Ethereum has entered the correction phase, and all the price momentum indicators suggest further bearish trends. The Moving Average Convergence Divergence (MACD) has flashed a “Sell” signal, showing downward pressure. In contrast, the Relative Strength Index (RSI) has remained in the “Neutral” zone without any strong indication of reversal from its oversold conditions.
Ethereum Sees 82 % Long Positions Despite Bears
Despite the bearish sentiment in spot markets, derivatives traders seem to have a better outlook on Ethereum’s future. More than 82% of traders with active contracts on Binance are long on Ethereum, a sign of confidence in the eventual recovery.
At the time of writing, Ethereum is trading at $3,212.47, with a 24-hour trading volume of $16.90 billion. Its market capitalization is $387.07 billion, which is about 11.69% of the entire crypto market. In the last 24 hours, its price movement has declined by 1.90%, reflecting continued uncertainty and volatility.
The recent selloff by a high-profile whale underlines the larger challenges faced by Ethereum and the crypto market at large. With bearish sentiment persuasive in the market and tremendous sell pressure indicated by exchange inflows, Ethereum’s prospect in the near term remains clouded. But derivative traders’ optimism is a harbinger of a possible recovery.
As Ethereum navigates these turbulent waters, market participants will closely monitor on-chain metrics and technical indicators for signs of a turnaround or further downside.
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