As of the latest update, Ethereum [ETH] is currently trading at a weekly low of $3,683 following a 4% decline in the last 24 hours. This drop has contributed to a 6% decrease in Ethereum’s value over the past week, although the overall monthly increase remains at 17%.
The recent downturn led to a total of $124M in ETH liquidations, with $108M coming from long positions. This rush to close positions by long buyers resulted in a noticeable decrease in holdings among Ethereum whales.
Large Ethereum Holders Transfer $200M ETH
Insights from IntoTheBlock highlight a significant movement of Ethereum among whales in mid-December, where addresses holding 1,000 to 10,000 ETH saw a reduction from 13.47M to 13.41M. This shift indicated a sale of 60,000 ETH, amounting to over $200M.
Recent reports indicate that ETH whales make up the majority (57%) of the altcoin’s supply. Therefore, any decrease in their holdings could potentially lead to increased selling pressure and negatively impact the market price.
Influx of Assets to Exchanges
The uptick in selling activity is evident from the surge in inflows to spot exchanges, with netflows reaching their highest level in a week.
This sell-off triggered a sharp decline in ETH’s value from $3,900 to approximately $3,500. Should this selling trend persist without a corresponding increase in buying pressure, it may continue to exert bearish pressure on Ethereum’s price.
Is Institutional Interest Waning?
December witnessed a notable rise in institutional demand for ETH, particularly reflected in the increased inflows to spot ETFs. Data from SoSoValue revealed 18 consecutive days of positive inflows to these products.
However, on the 18th of December, total inflows dipped to $2.45 million, marking the lowest since late November. Additionally, the Grayscale Ethereum Mini Trust experienced $15 million in outflows, its first negative flow in a while.
The growing inflows into these ETFs have been a driving force behind the demand surge that propelled ETH above $4,000. Any weakening of this demand could lead to a potential price correction.
Future Price Targets for ETH
An important supply zone for ETH lies within the $3,800 to $3,900 range. Records from IntoTheBlock show that 2.59M addresses accumulated 4.85M ETH during this price range.
If buyers return to the market, they may encounter strong resistance in this zone as traders consider profit-taking opportunities. Should Ethereum manage to surpass this threshold, it could trigger further price gains.
Analysis of Derivatives Market Data
The derivatives market for ETH remains highly speculative, according to Coinglass. Despite a 4% decrease in open interest, trading volumes for derivatives have surged by around 30%.
Furthermore, Ethereum’s open interest currently stands at $27 billion, nearing its all-time high by 6%. Notably, a dominant bearish sentiment appears among derivative traders, with a long/short ratio at $0.91.