Ethereum, the second-largest cryptocurrency in the world, is witnessing a substantial sell-off by institutional investors and whales, causing a notable drop in its price.
ETH Distribution by Institutions
According to a post on X, institutions offloaded a hefty 55,035 ETH, equivalent to $123 million, to Binance during Asian trading hours. This large-scale dumping was carried out by Wintermute, a prominent algorithmic trading firm, and Metalpha, a digital asset manager. Wintermute dumped 46,947 ETH ($104.74 million) and Metalpha 8,088.8 ETH ($18.05 million) respectively, within a span of two hours. This massive offloading could potentially affect the price of the altcoin.
Ethereum’s Technical Analysis
A glance at the price charts indicates that Ethereum has retested its key support level of $2,140, a level that has acted as a strong support for ETH since late 2023. Interestingly, the Relative Strength Index (RSI) of Ethereum formed a bullish divergence on the daily time frame, hinting at a possible trend reversal. This, combined with the recent retest of support, suggests a high likelihood of ETH’s price rising by 25% or 30% to $2,500 or $2,550.
Market Conditions and Trading Data
In the shorter timeframe, there are some bullish indicators for ETH. For example, CoinGlass’s ETH Long/Short ratio on a four-hour timeframe was 1.168 at press time, indicating bullish sentiment. Additionally, data showed that 53.88% of top traders held long positions, while 46.12% held short positions. Over the same period, total ETH Futures Open Interest increased by 1.80%, indicating increased trader participation as ETH revisited its strong support level.
At press time, ETH was trading around the $2,280-level, following a 2% decline in the last 24 hours. Its trading volume over the same period surged by almost 100%, indicating increased participation from traders and investors.
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