Whale Sell-Off Pressures Ethereum; Support Levels Identified Below $1,600

Ethereum has faced significant selling pressure as whales sold over 143,000 ETH between April 9 and April 14, impacting market confidence. Key support zones identified between $1,457 and $1,598 may buffer further declines. Galaxy Digital’s movements and increased exchange inflows indicate strategic profit-taking among large holders. Market participants are watching closely to see if buyers will defend these support levels or if further downward movement will occur.

The recent sell-off by Ethereum whales has raised concerns about a potential decline in Ethereum’s price, particularly towards the cost basis support zones of $1,457 to $1,598. Over the past week, whale wallets, specifically holding between 100 to 1,000 ETH, have divested over 143,000 ETH, reflecting a shift in market sentiment and a desire to take profits amidst uncertainty.

Data from April 9 indicated that 9.4325 million ETH was held across these wallets, but by April 14, this number fell to 9.2894 million ETH. Simultaneously, Ethereum’s price decreased from $1,669 to $1,623, demonstrating a correlation between whale activity and declining market prices. This suggests that investors are either cashing out profits or losing confidence in the asset.

Additional evidence of this trend is provided by the activities of Galaxy Digital, which transferred 49,681 ETH (approximately $79.37 million) to exchanges like Binance and Coinbase, indicating a liquidity strategy amidst market fluctuations. As the ETH price continues to decline, the balance of inflows to outflows on exchanges, as reported by CoinGlass, reflects a net inflow, further signifying increased selling intentions among holders.

Support zones based on Glassnode’s cost basis distribution chart have emerged near key price levels of $1,457, $1,546, and $1,598, where significant ETH transactions occurred. Approximately 408,000 ETH sit at $1,457, with 822,000 ETH at $1,546, and 725,000 ETH at $1,598. These levels may provide short-term price support as investors who purchased at these prices may be hesitant to incur losses.

As ETH price hovered below $1,600 throughout April, these key thresholds could soon be tested if the downward selling trend continues. The actions of large holders suggest a strategic profit-taking approach in response to shifting market conditions, diverging from retail sentiment. Observing how the market reacts as it approaches these critical support zones will provide insights into future price movements of Ethereum.