Selling pressure on Ethereum intensifies, may face a sharp correction
Ethereum has faced significant selling pressure recently, especially from crypto whales and institutional investors, raising concerns about further price declines. Cryptocurrencies such as Bitcoin and Ethereum have experienced sharp declines in recent days, further exacerbating investor panic. According to on-chain data analyst The Data Nerd, more than 63,538 Ethereum coins were sold in the past 24 hours alone, worth a whopping $141.7 million.
These sales came primarily from large institutions, including Wintermute and Metalpha, which sold 46,947 Ethereum and 8,088.8 Ethereum, respectively, for a combined value of over $100 million. As market sentiment continues to slide lower, analysts warn that Ethereum could face a nearly 30% correction to $1,500 if it fails to hold support at $2,130.
Image source: Ultimez_chandan Analysts warn that if Ethereum fails to hold support at $2,130, it could face a nearly 30% correction to $1,500.
Market technical indicators and potential sell-off risks
Despite the bleak market outlook, some technical indicators still point to the possibility of a rebound for Ethereum. For example, Ethereum’s Relative Strength Index (RSI) has formed a bullish divergence on the daily chart, indicating that the market may be switching from a downtrend to an uptrend. However, a reversal in this trend will require Ethereum to hold key support levels, otherwise the risk of a plunge to $1,500 remains.
Meanwhile, data shows that Ethereum’s main liquidation zone is concentrated between $2,245 and $2,311. According to data from CoinGlass, if Ethereum falls to $2,245, the market will face pressure to liquidate long positions of approximately $275 million. Conversely, if the price rises to $2,311, around $170 million in short positions could be liquidated. At the time of writing, Ethereum was trading around $2,292, with trading volume up 30% in the past 24 hours, indicating increased activity in the market amid the sell-off.
Image source: TradingView
The confidence of long-term holders has declined, and the bull market may be difficult to reproduce
In addition to the selling by whales and institutional investors, long-term holders of the market also appear to be losing confidence. According to the latest on-chain data, the long-term and short-term gap between Ethereum’s market value and realized value (MVRV) reached an annual high of 55% six months ago and is currently only 2.08%, indicating that many long-term holders Profitable positions have been exited. If this indicator continues to decline, it may signal the risk of Ethereum entering a long-term bear market.
In addition, another key indicator - "position holding time" shows that the confidence of currency holders is also declining. Typically, growth in this indicator means investors are reluctant to sell, signaling confidence in a bull market. However, recent data shows that Ethereum’s 30-day open interest has increased, which may indicate that investors are losing confidence in the asset, signaling a shift in market sentiment.
Overall, although technical indicators suggest that Ethereum may rebound in the short term, due to continued whale selling and continued negative sentiment in the market, analysts warn that Ethereum is still likely to fall further, possibly even in the coming weeks. Breaking $2,000. If the market fails to regain stability, Ethereum may find it difficult to maintain a bull market pattern.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
