Ethereum Whale Activity
Ethereum whales sold 60,000 ETH valued over $200M after a price drop to a weekly low.
Ethereum (ETH) recently traded at a weekly low of $3,683, following a 4% decline within 24 hours. Despite the dip, ETH has seen a 17% gain over the month, although seven-day losses reached 6%.
The price drop led to total ETH liquidations of $124M, with $108M coming from long liquidations. This activity prompted whales to cut down their holdings significantly.
Ethereum Whales Move $200M ETH
Data from IntoTheBlock indicates that on December 18th, Ethereum whales, holding between 1,000 and 10,000 ETH, reduced their holdings from 13.47M ETH to 13.41M ETH, selling 60,000 ETH worth over $200M. This sale impacts the market as these whales represent 57% of the altcoin’s supply, potentially increasing sell-side pressure.
Surge in Exchange Inflows
The selling pressure was evident as inflows to spot exchanges hit a weekly high, suggesting continued bearish sentiment. ETH experienced a drop from $3,900 to around $3,500 due to this sell-off, raising concerns about further declines without increased buying activity.
Institutional Demand
In December, institutional demand spiked, reflecting positive inflows into spot ETFs for 18 consecutive days. However, recent figures indicate inflows reached $2.45 million, the lowest since late November, with noticeable outflows from the Grayscale Ethereum Mini Trust, hinting at a potential demand drop that could impact prices.
Next Target for ETH
Ethereum’s supply zone lies between $3,800 and $3,900, where 2.59M addresses bought 4.85M ETH. If buyers resurface, they might face resistance in this area as traders look to take profits. Conversely, breaking through this range could unleash further price gains.
Derivatives Market Analysis
Speculative interests in ETH remain high. Though open interest fell by 4%, trading volumes surged by roughly 30%. Open interest stands at $27 billion, just 6% off all-time highs. Predominantly, derivative traders are adopting short positions, as evidenced by a long/short ratio of $0.91, reflecting bearish trader sentiment.
Read Ethereum’s Price Prediction 2024-25
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