Whale activity in risk-off markets tends to provoke strong market reactions.
The impact is even greater when a wallet that has been dormant for a long time suddenly becomes active. Recently, a similar Ethereum move gained attention across the market.
According to Lookonchain, 10,000 wallets were sold after being unused for 3 years $ETHwill receive $17.72 million. $USDC The average price is $1,772.
What should be noted is this $USDC The flow is worth seeing. According to data from DeFiLlama, nearly $3.5 billion has flown out of the stablecoin market this week alone, contributing to a decline of more than 1.07%.
meanwhile, $USDCThe market capitalization also weakened, with capital outflows totaling more than $3 billion for eight consecutive weeks.
From a technical perspective, this is Ethereum’s ($ETH) Corrected over 33% from the $2.4,000 local top and is currently testing the strength of the $1.5,000 support zone.
In this context, $USDC The spill signals a broader risk-off attitude among whales, and the recent sale of dormant whales could serve as a rotation into stable “dry powder.” $ETH Weakness.
More importantly, this move coincides with important technical signals. Ethereum’s daily RSI is currently at its most oversold level in the past 7.5 years, even more extreme than past stress events such as the COVID-19 crash, the FTX 2022 crash, and other large drawdowns.
However, the lack of strong buying momentum suggests that downside demand remains weak as buyers are not stepping in with confidence despite oversold conditions.
In this context, short $ETH This can be seen as a relatively high-risk, high-return setup, especially if spot demand cannot intervene near key support levels.
Staking slowdown signals waning confidence in Ethereum
Typically, long-term, strong beliefs tend to be prominent in risk-off states.
The idea is simple. Conviction often drives the next stage of accumulation as the market cleans out weak hands, unwinds leveraged positions, and lowers prices.
This supports HODL sentiment as investors view drawdowns as temporary while maintaining long-term yields.
However, Ethereum staking flows do not fully reflect that situation. According to the data, the demand for Ethereum staking is still increasing and stands at approximately 3,103,238 $ETH Still queued to enter the network.
This is still far more than 49,738 cases. $ETH When waiting to leave, the difference is approximately 62 times. However, that spread has started to tighten, and staking entry requests have been on the decline since early May.
In fact, there are nearly 100,000 this month alone. $ETH Removed from staking queue.
Interestingly, this coincides with a reported profit of over $5.8 million from. $ETH There have been a lot of short positions this week, highlighting where the current high-reward setups are concentrated.
As a result, leverage skyrockets and positioning becomes crowded. $ETH If the major support fails, downside momentum could accelerate, and a break below the $1.5,000 level is starting to become more realistic.
Final summary
- Dormant whale sales, weak staking inflows, and oversold RSI all indicate vulnerability $ETH Dip demand is weak.
- Due to weaker liquidity and strong short performance, $ETH Leverage builds and it looks vulnerable if the $1.5,000 support breaks.
