Ethereum Faces Sell-Off: Is Key Support at Risk?

In turbulent market conditions, assets with substantial liquidity often show signs of stress before a price trend is confirmed. Ethereum [ETH] exhibited this behavior as major holders significantly reduced their stakes.

Key Takeaways

Ethereum is experiencing significant sell pressure from large holders, impacting its price.
Over 28,500 ETH was sold, intensifying short-term market pressure.
ETH is trading near key support levels, notably around $2,882.
Liquidity remains above $3,000, potentially acting as a magnet for price movements.
Market sentiment may shift if ETH manages to reclaim the resistance zone between $3,462 and $3,600.

Ethereum whales dump $83M

At the time of writing, ETH was trading around $2,957, and it was consolidating following a significant sell-off. Although the volume of sell orders was considerable, sellers did not manage to trigger an immediate price drop. This indicated that the market had absorbed the supply, though the risk of a price decline remained high.

Whale Activity and Increased Sell Pressure

According to on-chain analysis from Lookonchain, multiple large holders engaged in heavy selling over a brief period. Notably, a wallet associated with Konstantin Lomashuk, a founding member of Lido Finance and P2P.org, sold 14,585 ETH valued at approximately $42.7 million within just one hour.

Additionally, two other whales collectively sold 14,000 ETH worth about $40.8 million. One wallet dispatched 10,000 ETH through decentralized exchanges, while another transferred 4,000 ETH via leading centralized platforms. Altogether, over 28,500 ETH was introduced to the market, leading to heightened short-term sell pressure.

Assessing Ethereum's Support Amid Sell-Off

Despite the aggressive selling, Ethereum’s price indicated a measure of stability as it continued to trade above an upward support level, specifically in the 50%–61% Fibonacci retracement zones, which often attract price movements. Buyers consistently defended the lower support level around $2,882, limiting further downside momentum. Nevertheless, the market's momentum appeared fragile, with the RSI at 36.76 at the time, suggesting weakened demand without a clear capitulation.

Liquidity was concentrated above the $3,000 mark on liquidation heatmaps, a configuration that could attract price movements if selling pressure decreases.

Liquidity Heatmap

Failure to maintain trading above the 61% Fibonacci level could considerably weaken the current market setup. A downturn could expose the $2,607 region, where previous demand has been noted.

The Market's Division: Distribution vs. Long-Term Positioning

Currently, the market seems split between short-term distribution and long-term positioning. Whale selling is creating pressure, but the ETH price has avoided clear breakdowns during this observation period. The liquidity above often attracts price during consolidation phases. However, for sentiment to shift decisively, reclaiming the resistance zone between $3,462 and $3,600 is necessary. Until then, ETH remains vulnerable to price volatility, with possible movements in either direction.

ETH Price Movement

What to Monitor Next?

Ethereum's behavior around the $2,882 level could dictate its near-term trajectory. Traders should be on the lookout for RSI stabilization or any breakdown of Fibonacci support.