Ethereum on edge: How a $32M whale dump shook ETH prices

Key Takeaways

Ethereum whales deposited millions into Binance and shorted ETH on Hyperliquid as the price tested key triangle support near $4,260. Will bullish traders overpower resistance at $4,415 for a breakout rally?

As Ethereum’s [ETH] price moved sideways, some whales began offloading their ETH holdings. That’s why this whale activity has raised concerns about a potential price decline in the coming days.

Ethereum price at risk as whales offload millions in ETH

Lookonchain shared data showing that the whale wallet address 0x3e38 dumped 7,500 ETH worth $32.33 million into Binance.

Source: X

Despite the notable sell-off, the whale wallet still held 7,702 ETH worth $33 million after withdrawing 15,202 ETH between the 20th of July and the 12th of August at an average of $3,869. 

This indicates that the whale is selling its ETH to take profits, as the price has continued to move sideways over the past week.

Meanwhile, another whale wallet address, 0xd8ef, deposited 3.25 million USDC into Hyperliquid [HYPE] and opened ETH short positions with 25x leverage.

This particular whale positioned 3,000 ETH worth $12.98 million, with liquidation points placed at the $5,291.9 level.

ETH slips as traders watch key levels

Together, these moves highlighted weakening sentiment.

Over the past 24 hours, ETH slipped by 1.20% to $4,306 at press time. Not to mention, this decline has triggered a surge in trader and investor participation.

CoinMarketCap data revealed that ETH’s 24-hour trading volume soared by 11% compared to the previous day. 

This bearish whale activity coincided with ETH hovering near the base of a descending triangle on the four-hour chart. AMBCrypto’s analysis noted no clear directional bias yet.

However, the 9-day EMA crossed below the 15-day EMA, flashing a bearish signal.

Source: TradingView

Since the 15th of August, ETH has recorded four such crossovers, each followed by notable declines, heightening concerns of another dip.

And so, based on recent price action, ETH’s downside momentum could be activated only if the price falls below the $4,260 level.

Now, if that happens, Ethereum may decline further to below $4,000.

On the other hand, a rally could be possible if ETH clears the descending trendline resistance and the hurdle at $4,415. If this occurs, ETH could soar by 10% and reach the $4,865 level.