Ethereum Sell-off Coming? Whales Off-load $40 Million of ETH

Ethereum (ETH), the world’s second-biggest cryptocurrency, is experiencing notable selling pressure due to continuous dumping by whales and institutions. Amid this market downturn, whales and Ethereum co-founder Vitalik Buterin have transferred a significant over 15,706 ETH worth $40.13 million in the last 24 hours, as reported by the on-chain analytic firm Lookonchain.

Ether Whale Dumps $40 Million of ETH

According to Lookonchain’s post on X (Previously Twitter), out of 15,706 ETH, 14,906 ETH were dumped to centralized exchanges (CEXs) including Binance and Coinbase. Meanwhile, Buterin moved 800 ETH to a multisig wallet and later swapped 190 ETH for $477,000 USDC.

Technical Analysis and Prediction 

Moreover, all these ETH transfers occurred following the breakdown of the bearish rising wedge price action pattern on a daily time frame. With this notable dump, the sentiment for ETH has turned extremely bearish. Additionally, technical indicators such as the 200 Exponential Moving Average (EMA) signal that ETH is in a downtrend. 

Based on the price action and technical analysis, with this bearish outlook, there is a high possibility that ETH could decline by 12% to the $2,200 level in the coming days.

Key Liquidation Areas

Meanwhile, short sellers are dominating and liquidating long positions. Currently, the major liquidation levels are near the $2,487 level on the lower side and $2,550 on the upper side, according to the on-chain analytic firm CoinGlass. This data indicates that traders have been over-leveraged at these levels in the last 24 hours.

If the market sentiment remains bearish and the ETH price falls to the 2,487 level, nearly $256 million worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price rises to a $2,550 level, approximately $168 million worth of short positions will be liquidated.

Ether Price Analysis

These data show that ETH is currently $10 away from the massive long liquidation. At press time, Ether is trading near the $2,498 level and has experienced a price decline of over 2.65% in the last 24 hours. Meanwhile, its trading volume has dropped by 16% during the same period, indicating lower participation from traders due to the ongoing ETH dump and market sentiment.