Ethereum bearish structure extended. The altcoin breached the $1.7k support and fell below $1.6k, to a low of $1.5k before rebounding.
ETH last dropped to such levels two weeks ago, erasing even the slightest gains made in June. As of this writing, Ethereum traded at $1651, down 1.68%, adding to its 4% weekly decline.
With Ethereum experiencing a strong downtrend, it seems some whales have not only panicked but also capitulated.
Ethereum whales dump 19,441 ETH for $31 million
As Ethereum dropped to $1.5k, whales reduced their exposure to manage their losses. According to Arkham data, a whale deposited 6,855.13 ETH into 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 traded significantly below its purchasing price.
Therefore, exiting at the current levels, the whale will take a $2.62 million loss. The whale selling at a loss signals a lack of market confidence and fears of more losses.
Additionally, another whale returned after six years of dormancy and began selling his ETH holdings.
An Ethereum ICO participant returned after six years and began selling. Arkham data showed that the whale has sold 12,586 ETH for $20.59 million at an average price of $1,636.
The address still holds 15,000 ETH worth $24.29 million and is likely to continue selling. Combined, these two whales dumped 19,441 ETH worth approximately $31.6 million.
Market under intense pressure
With Ethereum whales aggressively dumping, their sell-side activity is heavily felt in the market. On the 24th of June, for example, Exchange Netflow skyrocketed to 90.3k then dropped to -20k at press time.
The jump in Netflow suggested that a significant number of traders deposited their assets to sell. As a result, the supply available for immediate selling ballooned.
According to Cryptoquant data, Ethereum’s Exchange Supply Ratio climbed to a three-week high of 0.124. A rising ESR implies reduced scarcity, a clear sign of increased selling activity.
Historically, such market behavior has preceded a market downturn, leading to further losses. In fact, the altcoin’s Relative Strength Index [RSI] dropped deeper to 33 before rising to 37 at press time.
With the RSI making a bearish crossover, it confirmed intense selling pressure, with bears strongly dominating the market. Such market power dynamics usually result in more losses on price charts.
Therefore, if prevailing market conditions persist, ETH is likely to drop below $1.6k, with $ 1,500 as critical support.
However, if overall crypto market sentiment improves, the rebound from the $1.5k slip will hold, and $1740 will be reclaimed.
- Ethereum whales panicked and dumped 19,441 ETH worth approximately $31.6 million.
- ETH dropped to a low of $1.5k before slightly rebounding amid strong downside momentum.