SharpLink’s move puts pressure on Ethereum as it drops below $3K

Key Takeaways

Who’s behind the latest dumping spree?

SharpLink, the first publicly listed company with Ethereum as its primary asset.

What’s the status of Spot ETFs right now?

U.S. Ethereum Spot ETFs recorded a total of $1.022 billion in outflows over the last seven trading sessions.

Ethereum (ETH) is facing mounting sell pressure, with the likes of SharpLink continuing to offload their holdings. This, on the back of persistent outflows from U.S Ethereum Spot ETFs and rising exchanges’ reserves. In November alone, ETH has shed over 20% of its value already. It may be set to extend its losses in the coming days.

According to Onchain Lens, SharpLink, the first publicly listed company with Ethereum as its primary asset, has dumped 10,975 ETH, worth $33.54 million, on the Galaxy Digital OTC exchange.

Following SharpLink’s deposit, Ethereum’s structure weakened on the charts, as reflected by ETF outflows and rising ETH reserves on exchanges.

On-chain metric flashes bearish signal

According to on-chain analytics platform SoSoValue, U.S Ethereum Spot ETFs have recorded outflows for seven consecutive days.

Data also revealed that total outflows during this period hit $1.022 billion, indicating that American investors may be pulling capital from these funds. This could allude to waning interest, while reinforcing a bearish outlook.

Source: SoSoValue

That’s not all though as crypto participants also seem to be dumping their ETH holdings. In fact, data from CryptoQuant revealed that over the past week, Ethereum reserves across all exchanges rose significantly – A sign of ongoing selling by investors and long-term holders.

According to the data, they have dumped 152,426 ETH in the past week alone. On the price charts, the impact of this selling is clearly evident too, with ETH falling below $2,900 on the charts. 

Source: CryptoQuant

Some traders and investors have shown strong interest in the asset, with the same reflected by the 22% hike in trading volume to $38.55 billion.

An uptick in trading volume while the asset’s price is falling means that market participants may be reinforcing its bearish direction.

Ethereum (ETH) price action and technical analysis

According to AMBCrypto’s analysis, Ethereum is now on a downtrend. Following the breakdown of its key support level, a further downside is possible. In fact, it could fall to as low as the $2,750-level.

However, this bearish outlook would only be confirmed if ETH continues to trade below $3,000 on the charts.

That might be likely though. Especially since at press time, ETH’s Average Directional Index (ADX) stood at 43.60 — above the key threshold of 25 — indicating strong directional momentum.