Despite the ongoing market recovery, Ethereum (ETH) seems to be facing a potential downward trend as both retail investors and institutional players are engaging in selling activities, leading to a significant dump of ETH on exchanges.
Institutional Selling Pressure
On the 10th of September, Lookonchain, an on-chain analytics company, highlighted on X (previously known as Twitter) that Metalpha, a Hong Kong-based asset management firm, sold 10,000 Ether valued at $23.45 million to Binance (BNB). Within the last four days, the company has liquidated over 33,589 ETH worth $77.55 million on Binance.
Despite this substantial sell-off, Metalpha still holds a sizable amount of 51,300 ETH, equivalent to $120 million, at the time of reporting.
Whales’ Position on ETH
Recently, a respected crypto analyst shared on X that Ethereum whales have halted their accumulation of ETH since early July and have instead opted to either sell off or redistribute their Ethereum holdings. This shift indicates a waning interest from both investors and large holders over the past few weeks.
If the trend of significant selling by whales and institutions persists, there is a considerable likelihood of a massive sell-off in the near future.
Crucial Price Levels to Monitor
A scrutiny of Ethereum’s performance by CryptoCrypto revealed positive developments. Ethereum, known as the king of altcoins, might witness an upward surge due to the prevailing bullish divergence observed on its Relative Strength Index (RSI). Moreover, it has found solid support at the critical $2,150 range.
Historically, whenever ETH’s price has reached this support level, it has frequently led to a substantial surge of more than 23%. Currently, there is an expectation that Ethereum could surge to $2,700, following a similar pattern.
Nevertheless, this optimistic outlook is conditional on Ethereum holding above the crucial support level at $2,150.
Bullish On-Chain Insights
On-chain data also reinforces the positive outlook for Ethereum. Coinglass’s ETH Long/Short Ratio Chart stood at +1.424, the highest level in the past week, indicating a bullish sentiment among traders.
Furthermore, ETH’s Futures Open Interest has risen by 2.5%, implying that traders are increasingly favoring long positions in their trading strategies.
The strong Long/Short Ratio and the uptick in Open Interest signal potential buying opportunities. Currently, 58.75% of top ETH traders hold long positions, while 41.25% are in short positions, suggesting a dominance of bulls in the market with the potential to force liquidations of short positions.
At present, Ethereum is trading close to the $2,350 mark, witnessing a price increase of more than 2.35% in the last 24 hours. The trading volume has also seen a slight uptick of 14%, indicating heightened trader engagement amid the ongoing market recovery.