What began as a shakeout of weak hands has quickly turned into a rush for the exit, with Ethereum (ETH) now caught under heavy selling pressure.
Today alone, Ethereum has dropped 5%, slipping from an intraday high of $4,379 during Asian trading hours, while trading activity fell by 11%. Because of this, whales have reportedly dropped out of their positions due to the drop, according to CoinMarketCap.
According to Lookonchain, large holders moved $148 million worth of ETH to exchanges in just three hours. These transfers created more selling pressure and pulled prices down further.
At the same time, data from Coinglass showed that investors in traditional markets are also pulling out. On Monday, Ethereum ETFs saw $196.6 million in net outflows. This was the second-largest daily loss ever recorded for ETH ETFs.
Meanwhile, the selling did not just start. Last Friday, Ethereum ETFs had already recorded $59 million in outflows, bringing the two-day total to $256 million. This shift from accumulation in the market is often a warning sign of weak conviction.
ETH Builds News key Support Level
Right now, Ethereum is trading in a descending channel and heading toward an important support zone at $4,150. With most of the daily candles red in the last week, ETH is testing supports.
With dropping over 17% in this small time frame, market participants are filled with fear, however even in this bearish sentiment, firms like SharpLink and Bitmine counties to buy more on more ETH.
The Relative Strength Index (RSI) is now near 35, and this suggests that sellers are running out of stream. At the same time, the MACD indicator shows weak selling pressure after a recent “death cross.”
The $4,150 level is now a delicate zone. If the market respects it, price could bounce back to $4,787, which is a possible 17% gain from current level. But for now, there’s no reason for recovery.
Also Read: Ethereum Community Buzzed with Trustless Agents (ERC-8004) Discussion