Ethereum bearish structure extended. The altcoin broke through support at $1.7,000, fell below $1.6,000, and fell to a low of $1.5,000 before rebounding.
$ETH The last time it fell to such levels was two weeks ago, erasing even June’s modest gains. At the time of writing, Ethereum was down 1.68%, trading at $1,651, adding to its weekly decline of 4%.
As Ethereum is experiencing a strong downtrend, it appears that some whales have not only panicked but also capitulated.
Ethereum whale dump 19,441 $ETH for $31 million
As Ethereum fell to $1.5,000, Whales reduced their exposure to manage their losses. According to Arkham data, Whale deposited $6,855.13. $ETH Invested in Binance worth $11.02 million.
These tokens were accumulated in February and March this year at an average price of $1,991. At press time, $ETH It traded well below the purchase price.
Therefore, an exit at current levels would result in a loss of $2.62 million for the whale. Selling a whale at a loss indicates a lack of confidence in the market and fear of further losses.
Additionally, another whale returned after a six-year hiatus and began selling his whales. $ETH Collection.
Ethereum ICO participants have returned for the first time in six years and started selling. According to Arkham data, 12,586 whales were sold. $ETH $20.59 million with an average price of $1,636.
Address still has 15,000 saved $ETH It is valued at $24.29 million and may continue to be sold. Together, these two whales have jettisoned 19,441 whales. $ETH Worth approximately $31.6 million.
Market under intense pressure
With Ethereum whales actively dumping, their sell-side activity is strongly felt in the market. For example, on June 24th, Exchange Netflow spiked to 90.3k, but as of this article it has dropped to -20k.
The spike in net flows suggests that a significant number of traders have parked their assets for sale. As a result, the supply available for immediate sale has increased rapidly.
Ethereum’s exchange supply ratio rose to a three-week high of 0.124, according to Cryptoquant data. An increase in ESR means a decrease in scarcity and is a clear sign of increased sales activity.
Historically, this type of market behavior has led to further losses prior to market downturns. In fact, the altcoin’s relative strength index (RSI) further declined to 33 before rising to 37 at the time of writing.
A bearish crossover in the RSI confirms that the bears are in strong control of the market and there is intense selling pressure. Such market dynamics usually result in more losses on the price chart.
Therefore, if prevailing market conditions continue; $ETH A fall below $1.6,000 is likely, with $1,500 as important support.
However, if overall crypto market sentiment improves, the rebound from the $1.5,000 drop will persist and $1,740 will be regained.
- Ethereum whale panics and dumps 19,441 $ETH Worth approximately $31.6 million.
- $ETH It fell to a low of $1.5,000, but rebounded slightly amid strong downward momentum.
