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Whales increase selling pressure, 630,000 ETH outflow
Ethereum exchange reserves have dropped by 270,000 ETH in the past week. Whales have distributed over 630,000 ETH since February 9.
Ether (ETH) fell 1.5% on Tuesday to trade just above $1,900 as whale supply allocations, exchange reserves and exchange-traded fund (ETF) liquidity all showed strong bearish trends.
According to data from CryptoQuant, Ethereum exchange reserves have increased by more than 100K ETH since the beginning of the week. On a weekly timeframe, reserves increased by over 270K ETH. The increase suggests that the top altcoin is facing slightly higher selling pressure amid the range-bound market.
Whales holding between 10K and 100K ETH may be leading the selling pressure, reducing their holdings by 630K ETH in the past week, according to data from Santiment. The allocation brings their total holdings down to levels not seen since mid-January.
The Ethereum ETF followed a similar trend, posting its ninth consecutive day of negative liquidity after recording $7.3 million in outflows on Monday, according to data from Coinglass. If the products see outflows again on Tuesday, it would mark the highest number of consecutive days of negative liquidity since they were first launched in July last year.
While multiple on-chain metrics point to the downside, ETH’s total staked value is an exception, having increased by nearly 180K ETH in the past week. This suggests that a large number of ETH investors still hold a long-term bullish view.
In a note to FXStreet, Nick Forster, founder of crypto derivatives exchange Derive, said:
“As of now, we see a 17% probability of ETH exceeding $3K by the end of September, and a 31% probability of being below $1.5K by the same date. ETH also faces competition from Solana and other alt L1 chains that are actively gaining traction.”
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