|

Ethereum Price Forecast: Whales step up selling pressure with 630,000 ETH exodus

Ethereum price today: $1,900

  • Ethereum exchange reserves have declined by 270,000 ETH in the past week.
  • Whales have distributed over 630,000 ETH since February 9.
  • ETH could break out of its week-long consolidation if it recovers the $2,000 psychological level.

Ethereum (ETH) is down 1.5% on Tuesday, trading just above $1,900 amid a high bearish trend across whales supply distribution, exchange reserves and exchange-traded fund (ETF) flows.

Ethereum whales deplete holdings amid bearish market signals

Ethereum exchange reserves have increased by over 100K ETH since the beginning of the week, per CryptoQuant's data. On the weekly timeframe, the reserves increased by over 270K ETH. The increase indicates a slightly high selling pressure on the top altcoin amid a range-bound market.

Whales holding between 10K to 100K ETH potentially led the selling pressure, scaling down their holdings by 630K ETH in the past week, per Santiment data. The distribution has sent their total holdings to levels last seen since mid-January.

ETH supply distribution. Source: Santiment

ETH supply distribution. Source: Santiment

Ethereum ETFs have followed a similar trend, recording a ninth consecutive day of negative flows after posting $7.30 million in outflows on Monday, per Coinglass data. If the products record outflows again on Tuesday, it will mark their highest negative flow streak since debuting in July.

Despite several on-chain metrics pointing toward the downside, ETH's total value staked is an outlier, rising by nearly 180K ETH in the past week. This shows that a large number of ETH investors still hold a long-term bullish view.

ETH total value staked. Source: CryptoQuant

ETH total value staked. Source: CryptoQuant

In a note to FXStreet, crypto derivates exchange Derive founder Nick Forster stated that:

"As of now, we see a 17% chance of ETH reaching over $3K by the end of September, with a 31% chance it could settle below $1.5K by the same date. ETH is also facing increasing competition from Solana and other alt L1 chains, which are actively attracting attention."

Ethereum Price Forecast: ETH needs to recover $2,000 to break out of sideways market

Ethereum saw $33.86 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of long and short liquidations accounted for $27.04 million and $6.82 million, respectively.

ETH continued its consolidation within the $2,000 to $1,800 range for a ninth consecutive day as market players have remained largely indecisive.

ETH/USDT daily chart

ETH/USDT daily chart

ETH has to sustain a firm move above the $2,000 psychological level and hold it as support to recover the bullish momentum. The descending trendline resistance extending from February 25 is also a key barrier on the upside.

Meanwhile, a high volume decline below $1,800 could send ETH toward $1,500.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are testing their neutral levels, signaling a potential short-term shift from the dominant bearish momentum.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.

Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.

Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.

Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.

Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

More from Michael Ebiekutan
Share:

Editor's Picks

Ripple ticks higher as selling pressure eases amid whale net outflows

Ripple edges higher near $1.30 on Wednesday, building on a broader crypto market recovery wave. The uptick comes amid the US midterm elections, in which the Democratic Party has clinched victory in the Senate and is on track to gain control of Congress.

Crypto Today: Bitcoin, Ethereum, XRP extend advance as US Dollar slides on Democrats' US midterm victory

Bitcoin trades above $78,000 on Wednesday as risk-on sentiment improves in the broader cryptocurrency market. Ethereum mirrors BTC’s recovery outlook, hovering above $2,300. Ripple similarly exchanges hands above $1.28, marking two consecutive days of gains.

Pi Network Price Forecast: Bullish breakout hopes fade as PI approaches record lows

Pi Network (PI) is trading in the red on Wednesday, hovering around $0.0755, with a downside risk toward the $0.0704 record low. The retail activity in the derivatives market declines as PI futures Open Interest plunges to nearly $7.50 million.

US midterm elections set up a potential volatility shock for BTC

Bitcoin holds above the key 200-day EMA but remains capped by the 100-day EMA, with a breakout in either direction likely to determine its next directional bias. Analysts remain bullish on BTC but expect a significant price swing in either direction, favoring volatility-based strategies over directional bets.

Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.