Ethereum Whales Liquidate $1.8 Billion in ETH Amidst Price Stagnation

Ethereum’s price struggles around $1,700, resulting in a significant sell-off of 1.19 million ETH by whales, totalling over $1.8 billion. This reflects a shift in sentiment and ongoing market challenges for long-term holders, compounded by negative momentum indicators. Currently, ETH is at $1,570, with critical support at $1,533, but risks further declines unless it can breach $1,625 to reclaim upward momentum.

Ethereum’s price has been stagnant, hovering around the $1,700 threshold in recent days, which has raised concerns over its ability to rebound. Despite several attempts to climb higher, Ethereum (ETH) has not gained substantial momentum, leading to significant sell-offs by large holders, or ‘whales’, adding to the prevailing bearish sentiment within the market.

Over the past three days, large-scale holders of ETH, specifically addresses containing between 100,000 and 1 million coins, have collectively sold approximately 1.19 million ETH, translating to over $1.8 billion. This decision by whales to liquidate a considerable amount of Ethereum indicates a notable shift in market confidence, likely aimed at mitigating potential losses amidst the current price stagnation.

As Ethereum struggles to maintain momentum above the $1,700 barrier, these substantial sell-offs signal growing pessimism regarding Ethereum’s short-term price trajectory. Presently, the overall market condition for Ethereum seems unfavourable, highlighted by a negative MVRV Long/Short Difference of -29%, suggesting that long-term holders are facing challenges in preserving profit margins, which further contributes to market volatility.

With short-term holders typically selling quickly after realising profits, Ethereum remains vulnerable to additional declines. As these investors continue to offload their assets, it elevates the risk of further depreciations in ETH’s price, unless significant positive catalysts emerge to stimulate an uptrend.

Currently priced at $1,570, Ethereum is positioned above the critical support level of $1,533. However, continued negative sentiment could precipitate further declines. If bearish trends persist, a drop below the $1,533 support could lead to an extension of losses, potentially reaching as low as $1,429.

Conversely, if Ethereum can reclaim $1,625 as support, it may signify the possibility of another attempt to break through the $1,700 resistance. A successful breach of this level could propel ETH towards $1,745, countering the existing bearish expectations and paving the way for a potential market reversal.