Ethereum ($ETH )has witnessed significant declines over the past few days, prompting major holders to liquidate large portions of their holdings. Data from market tracker LookonChain shows that ETH’s price has fallen by 18.35% from its Monday high of $4,109, forming a bearish engulfing pattern on the daily chart.
As of today, Ethereum has dropped over 7%, triggering heightened activity among whale investors looking to repay debts. At the time of writing, Ethereum, the second-largest cryptocurrency by market cap, is trading at $3,390. Its 24-hour trading volume has surged by 14%, reflecting increased market activity.
Whales Offload Millions in Ethereum Holdings
LookonChain reported that a whale deposited 22,746 ETH (worth $77.7 million) to Binance early Friday to withdraw stablecoins for debt repayment on decentralized finance platforms Spark and Aave. Over the last two days, this whale has transferred a total of 31,968 ETH (valued at $108.3 million) to Binance.
Another whale deposited an even larger sum of 49,910 ETH (valued at $170 million) to Binance in recent hours. This individual subsequently withdrew $137.8 million in stablecoins, likely to settle outstanding debts.
In the seven days leading up to December 18, Ethereum whales holding between 1,000 and 10,000 ETH collectively reduced their holdings from 13.47 million ETH to 13.41 million ETH. This sell-off represents 60,000 ETH, valued at over $200 million.
Rising Liquidations and Declining Open Interest
CoinGlass data reveals that Ethereum liquidations have surpassed $190 million in the last 24 hours, with long positions accounting for $165 million and short positions $25 million. Additionally, Ethereum’s Open Interest (OI) has declined by 7.4%, aligning with the broader bearish sentiment in the crypto market.
Selective Buying Amid the Dip
Not all whales are bearish. World Liberty Finance, reportedly linked to President-elect Donald Trump, acquired 722 ETH for 2.5 million USDT on Thursday, despite the price drop.
Another notable entity, Longling Capital, purchased 6,000 ETH during the dip. Known for strategic market timing, this whale has reportedly amassed $83 million in profits through Ethereum trades.
Ethereum Faces Strong Resistance at $4,000
Ethereum’s struggle to surpass the $4,000 resistance level continues. The price point has served as a significant weekly barrier throughout 2024, with Ethereum facing its third rejection this year alone.
Historical data reveals that $4,000 has acted as a resistance level five times since 2021. Although Ethereum futures Open Interest reached a record $28.70 billion on December 17, it has since dropped to $25 billion.
Market sentiment has shifted bearish, with aggregated futures premiums turning negative for the first time since November 6. This change reflects a rise in short positions, adding further downward pressure on ETH prices and keeping them below the $4,000 threshold.
This drop serves as a reminder of the volatility in the cryptocurrency market, with significant implications for whales and retail investors alike.
