Significant Ethereum Distribution Persists: Whale Transacts Another 5,000 ETH to Binance

As Ethereum slipped below the critical $3,000 mark on Sunday, it fell towards $2,800, sparking a new wave of concern within the market. This downturn emphasizes a deepening corrective phase that has left short-term investors facing substantial unrealized losses, causing many to reevaluate their risk exposure.

Key Takeaways

Ethereum has dropped below the $3,000 level, falling towards $2,800 and raising market concerns.
A significant whale transferred another 5,000 ETH into Binance, continuing a pattern of distribution that pressures the market.
Since late October, the same whale has sold over $85 million worth of ETH, maintaining a reserve that could impact future selling dynamics.
Ongoing market anxiety is fueled by recent concerns surrounding Tether and rumors of a Bitcoin ban in China.
Ethereum's price is struggling to regain momentum and remains below key moving averages, keeping the bearish trend intact.

Significant Ethereum Distribution Persists: Whale Transacts Another 5,000 ETH to Binance

Fresh on-chain data has revealed increased selling activity from significant holders. According to Arkham's data, shared by Lookonchain, the prominent whale wallet 0xdECF has transferred an additional 5,000 ETH—valued at approximately $15.05 million—into Binance.

Ethereum Whale Transfers | Source: Arkham

This transaction is part of a broader trend of persistent selling pressure from large wallets during times of market strain. Although one whale's actions don’t dictate the overall market trend, these withdrawals typically signal bearish sentiment among traders, who often monitor exchange inflows as indicators of potential sell-side liquidity.

Whale Selling Increases Amid Market Concerns

Since October 28, the same whale wallet has escalated its selling actions, releasing 25,603 ETH—around $85.44 million—across Binance and Galaxy Digital. Despite this aggressive selling, the wallet continues to hold 10,000 ETH worth about $30.34 million, suggesting that additional selling pressure could materialize if the market weakens further. Significant transfers like these often indicate a change in sentiment from informed holders who tend to predict volatility sooner than the general market.

This selling spree occurs in an environment where investor confidence is already fragile. Recent concerns about Tether, driven by speculation over reserve transparency and possible regulatory scrutiny, have further strained liquidity.

Additionally, rumors of a purported Bitcoin ban in China have resurfaced on social media, intensifying fear among retail and short-term investors. While these narratives don’t introduce new fundamental risks, emotional markets typically react strongly to sensational news during correction phases.

These factors together create a situation where whale distributions can have substantial influence. If the remaining 10,000 ETH is deposited to exchanges, it could exacerbate short-term downward pressure. Conversely, a halt in selling might indicate that the whale considers current price levels as nearing capitulation, potentially establishing a floor for price stabilization.

Ethereum Price Faces Support Challenges as Downtrend Persists

The 4-hour chart for Ethereum indicates that the market continues to struggle to regain momentum after dropping below the $3,000 threshold. The overall market structure remains decidedly bearish, with prices trading below the 50, 100, and 200 Simple Moving Averages (SMA), signifying ongoing seller control of the trend. Every attempt to bounce back above these moving averages has met with rejection, reinforcing the downtrend that started in late October and has continued through November.

ETH testing local low liquidity | Source: ETHUSDT chart on TradingView

The recent rebound from the support area between $2,750 and $2,800 shows that buyers are attempting to defend this level, although the enthusiasm behind this reaction appears to be lacking. Trading volume remains low, and the latest effort to reclaim $3,000 was quickly thwarted, resulting in another lower high. This indicates hesitancy and suggests that buyers are not yet strong enough to change market dynamics.

The compression seen in the latter part of the chart created a small symmetrical triangle, but the subsequent breakdown confirms that sellers still dominate the short-term momentum. As long as ETH remains under the 200 Exponential Moving Average (EMA), now approximately at $3,350, the macro trend favors a continuation of the downtrend.

If the $2,800 support fails, liquidity levels are expected around $2,600 and $2,450, which may attract more buyer interest. For now, Ethereum needs to reclaim the $3,000 level with sustained volume to alleviate bearish pressure.