Ethereum has been in a slump for weeks, unable to break out of its established range despite multiple breakout attempts. Price trends remain compressed and directionless.
Whale activity is now adding new downward pressure. This could either extend the consolidation phase or push Ethereum towards a lower support level.
There are concerns about the sale of Ethereum.
Large Ethereum wallet holders have been consistently offloading their positions over the past seven days. Approximately 380,000 $ETHapproximately $800 million worth of goods were sold by whale layer addresses during this period. This sustained distribution from influential holders indicates that fears of further losses outweigh confidence in short-term price recovery.
The timing of the sale of these whales is particularly important. Offloading accelerated after last week’s modest price rally, suggesting these holders are using the short-term rally as an exit opportunity.
This action creates sustained sell-side pressure, limits upside room, and undermines any organic buying momentum that may be building behind the scenes.
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Ethereum Whale Holdings. Source: Santiment
The MVRV long/short differential has fallen deep into negative territory, revealing that short-term holders are currently dominating profits more than long-term holders. This imbalance in profit distribution creates an unstable basis for price recovery. STH’s advantage in profitability has historically been associated with increased sales risk.
Short-term holders are inherently more reactive than long-term holders. They tend to exit positions at the first sign of profit or loss, making it difficult to sustain sustained gains.
With STH currently holding most of the unrealized gains, Ethereum’s recovery potential remains limited by the ever-present threat of sudden profit taking.
Ethereum MVRV long/short difference. Source: Santiment
$ETH Price may fail to breakout in current situation
Ethereum price is trading at $2,089 and has been range-bound between $2,158 resistance and $1,917 support for almost a month. This well-established range reflects a permanent equilibrium between buyers and sellers. Consolidation is likely to continue as competing forces cancel each other out without a decisive catalyst to disrupt the structure.
Within this range, whale selling is the main downside risk. Continued distribution may be prolonged $ETH Heading back towards the $1,917 support floor.
Although a break below this level remains unlikely, a repeat of the previous support failure could push Ethereum price towards $1,840. This will compound losses for holders already facing a long period of consolidation.
$ETH Price analysis. Source: TradingView
On the other hand, there could be upside room if the geopolitical situation improves and selling from both whales and STH is contained. Additionally, a break above $2,158 will open the way to $2,348. This would invalidate bearish theories and confirm that the Ethereum consolidation has resolved in favor of the bulls.
The article “$800 Million Whale Sale Threatens Ethereum Price Recovery” was first published on BeInCrypto.
