Ethereum is barely holding onto the crucial $3,000 level as the broader crypto market battles intense selling pressure. Uncertainty remains high, liquidity is low and investors are bracing for more volatility. However, despite the drawdown, some analysts argue that this environment is starting to look like a classic oversold setup, one that has historically provided strong accumulation opportunities for long-term players.
New data from Lookonchain adds to the conspiracy by revealing unusual on-chain activity involving wallets that may be linked to SharpLink Gaming. The move has sparked intense speculation across markets, as large OTC trades often indicate strategic repositioning by institutional investors rather than panic selling.
This move stands out at a time when Ethereum is testing major support levels and sentiment is overwhelmingly bearish. The fact that large OTC flows are still occurring even as retail panic grips the public markets suggests that smart money is operating behind the scenes.
Wallet linked to SharpLink sparks sale speculation
According to new data from Lookonchain, the wallet may be linked to SharpLink Gaming (address 0x70dd) has executed a series of large-scale trades that have garnered attention across the Ethereum market. Over the past two days, the wallet transferred 10,975 ETH (worth approximately $33.5 million) to the Galaxy Digital OTC wallet. Shortly after, the company received 10 million USDC from the same OTC address, raising questions about the nature of this movement.
Lookonchain openly asks a question prevalent among analysts: “Is SharpLink Gaming selling ETH?” The transaction is similar to a structured over-the-counter sale in which large holders offload assets without impacting the public order book, but it has not yet been confirmed whether the funds directly belong to the company. However, what should be noted is the timing of the transfer. Ethereum is trading near a key support zone around $3,000, with market-wide liquidity tightening as panic selling accelerates.
While such large OTC flows often indicate a strategic repositioning rather than an emotional sell, they can still shape market sentiment. If this is indeed a sale, we will hear more talk of financial institutions reducing their exposure during the correction. If it is simply a reorganization of the Treasury, the impact may be far less bearish than it appears. For now, the market is watching closely.
Tests $3,000 support as momentum weakens
Ethereum is hovering just above the important $3,000 support zone, and this level has become a battleground between buyers looking to protect the trend and sellers pushing for further declines. The daily chart shows a clear and sustained downtrend that started after ETH failed to regain the $4,000 area in late October. Since then, falling highs and falling lows have defined the price trend, with ETH failing to break above the 50-day moving average, a sign of weakening momentum.
The 100-day moving average and 200-day moving average are also trending downward, reinforcing the bearish market structure. Prices are currently below all major moving averages, which is often a precursor to an extended correction in past cycles. However, the $3,000 to $2,950 range has served as a strong demand zone many times throughout the year, and buyers are once again looking to defend this range.
The candlesticks indicate a long bottom core forming around this level, suggesting that some bullish buyers are intervening, although confidence is still limited. If ETH definitively loses $3,000, the next support to look for would be around $2,750-2,800. Conversely, retrieving the 50-day moving average near $3,400 would be the first sign of a potential change in momentum after weeks of selling.
Featured image from ChatGPT, chart from TradingView.com
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