Ethereum (ETH) is facing significant selling pressure from whales and institutions, signaling a potential major price drop. On September 7, 2024, the overall cryptocurrency market experienced a notable price decline including Bitcoin (BTC) and Ethereum (ETH) resulting in continuous sell-offs by whales and institutions.
Whales and Institution Offloads $141M of Ethereum
In the last 24 hours, over 63,538 ETH worth $141.7 million has been sold on centralized exchanges including Binance and Kraken, as reported by the on-chain analytic firm. Data shows that in during the Asian market institutions like Wintermute and Metalpha have dumped a massive 46,947 ETH and 8,088.8 ETH worth $104.74 million and $18.05 million respectively.
Meanwhile, whale wallet addresses “0xa531,” “0xce9,” and James Fickel, the founder of the Amaranth foundation have dumped 2,500 ETH, 3,003 ETH, and 3,000 ETH worth $5.56 million, $6.7 million, and $6.64 million, respectively, before the opening bell of U.S. stock market.
This significant sell-off by whales and institutions has the potential to increase selling pressure and trigger even larger sell-offs in the market.
Ethereum Price Prediction
Expert technical analysis hints ETH is bearish and is currently hovering near a crucial support level of $2,230 level. Since January 2024, ETH has revisited this level six times, each time resulting in a price reversal.
However, due to the current bearish market sentiment and continuous ETH sell-offs by whales, it is crucial for ETH to survive above the $2,130 level. If ETH fails to hold this support level, there is a high possibility it could fall nearly 30% to the $1,500 level.
Despite the bearish outlook, ETH’s Relative Strength Index (RSI) has formed a bullish divergence on a daily time frame, indicating a potential trend reversal from a downtrend to an uptrend. However, this reversal is likely to occur only if ETH holds itself above the crucial support level.
Key Liquidation Areas
As of now, the major liquidation levels are near the $2,245 level on the lower side and $2,311 on the upper side, as traders are over-leveraged at these levels, according to CoinGlass data.
If the market experiences more selling pressure and Ether’s price falls to the $2,245 level, nearly $275 million worth of long positions will be liquidated. Conversely, if the sentiment shifts to the bullish side and the price rises to the $2,311 level, approximately $170 million worth of short positions will be liquidated.
At press time, ETH is trading near the $2,285 level and has experienced a price drop of over 2% in the last 24 hours. Meanwhile, its trading volume has increased by 30% during the same period, indicating higher participation from traders amid the market sell-off.
