Key Points
- Ethereum whales have sold off 60,000 ETH, equivalent to over $200M, following a price drop.
- Positive netflows to exchanges have notably increased, reaching a weekly high.
Following a dip in the price of Ethereum (ETH), Ethereum whales have sold a significant amount of their holdings.
The largest altcoin was trading at a weekly low of $3,683 at the time of writing, after a 4% drop within 24 hours.
Ethereum Whales Sell Off
This recent price drop led to total ETH liquidations amounting to $124M, with $108M being long liquidations.
As a result, both regular buyers and Ethereum whales have significantly reduced their holdings.
Data from IntoTheBlock reveals that on December 18, Ethereum whales holding between 1,000 and 10,000 ETH saw their holdings decrease from 13.47M to 13.41M.
This suggests that these addresses sold off 60,000 ETH, valued at over $200M.
ETH whales account for 57% of the altcoin supply, so a reduction in their holdings could potentially increase sell-side pressure and negatively impact the price.
Exchange Inflows Increase
The increase in selling activity is also evident in the spike in inflows to spot exchanges, with positive netflows to exchanges reaching their highest level in a week.
This sell-off resulted in a sharp reversal, with ETH dropping from $3,900 to around $3,500.
This trend of selling could continue and exert bearish pressure on ETH if buying pressure does not increase.
Institutional demand for ETH has seen a significant increase this month, as evidenced by the rise in inflows to spot ETFs.
However, on December 18, total inflows amounted to $2.45 million, the lowest since late November.
This could suggest a slowing in institutional demand, which, if it continues, could cause a price decline.
There is a potential supply zone for ETH between $3,800 and $3,900.
If buyers re-enter the market, any resulting uptrend could face strong resistance at this zone as traders look to book profits.
Speculative activity around ETH in the derivatives market remains high, despite a 4% decline in open interest.
Most derivative traders appear to have taken short positions, indicating a prevailing bearish sentiment among traders.
