Ethereum is experiencing significant sell-side pressure from whales and early ICO investors, with 143,000 ETH sold in just one week. Galaxy Digital has been active in transferring substantial ETH amounts to centralised exchanges, indicating potential future sales. An early ICO participant has also moved considerable ETH after a long dormancy. Concurrently, Ethereum ETFs are experiencing ongoing outflows, contributing to a pessimistic market outlook.
Currently, Ethereum is facing substantial sell-side pressure as considerable players including whales and early investors have commenced selling activities. Recent on-chain data indicates that over the past week, there has been a notable uptick in selling, with even previously inactive accounts becoming active again. This trend occurs amid decreasing ETF inflows which raises concerns regarding market sentiment towards Ethereum.
In just one week, Ethereum whales have divested approximately 143,000 ETH. This activity suggests a shift in market sentiment, likely driven by profit-taking or risk management. Such movements from whales portend potential implications for Ethereum’s price trajectory in the short to medium term, intensifying the caution among traders.
A notable contributor to the recent surge in ETH transfers is Galaxy Digital, led by Mike Novogratz. Recent on-chain data revealed a deposit of 12,181.161 ETH (around $19.02 million) to Coinbase, capitalising on a market dip. Over the past five days, total deposits to centralised exchanges reached 49,681 ETH, valued at approximately $79.36 million, indicating significant transactional activity.
The deposit activity from Galaxy Digital, averaging around $1,597 per ETH, suggests that these transfers may indicate market movement towards bearish territory. When significant amounts of ETH are transferred to exchanges, it often denotes the potential for ensuing sales, consequently impacting the asset’s price negatively, although correlation does not equate to causation.
In addition, an early Ethereum ICO participant recently moved 30,000 ETH, valued at approximately $47.85 million, after a three-year period of dormancy. This individual originally acquired 76,000 ETH at a mere cost of $23,560 in 2015. The current market value of the remaining ETH is now over $121 million, highlighting a significant appreciation despite the recent tumultuous market conditions.
Moreover, the negative trend extends to institutional investments, as U.S. spot Ethereum ETFs marked a net outflow of $12 million on April 16, continuing a streak of withdrawals spanning seven consecutive days. Such outflows indicate a troubling shift away from capital inflow that previously characterised institutional sentiment towards Ethereum, threatening to dampen the market further.
In conclusion, an amalgamation of whale selling, reactivation of dormant investor accounts, and consistent ETF outflows converge to create a precarious market environment for Ethereum. Approximately $140 million worth of ETH has been prepared for potential sales within a week, cultivating an atmosphere of uncertainty. The market is currently at a pivotal junction that might indicate deeper corrections or a transient phase prior to a price rebound, influenced largely by investor sentiment and macroeconomic factors.
