Expectations were high among holders as they anticipated Ethereum [ETH] breaking the $4,000 mark by the end of 2024.
Despite the cryptocurrency showing signs of sustaining the bullish momentum from November, there are indications of a potential significant pullback on the horizon.
Recent whale activity hints at a possible increase in ETH sell pressure, reflecting a cooling off of the once robust momentum.
Moreover, the increased activity of large ETH holders might be contributing to the emerging bearish trend.
According to IntoTheBlock data, outflows from large holders peaked at 647,220 ETH on December 3rd, with inflows also rising over the past three days, reaching 582,710 ETH based on the latest information.
The difference between inflows and outflows signals a higher selling pressure from whales than buying demand, an additional indication of weakening bullish signals.
While Ethereum ETF inflows have remained positive this week, there has been a noticeable decline compared to the previous week.
On December 3rd, Ethereum ETFs saw inflows of $132.6 million, an improvement from $24.2 million on the prior day.
Although Ethereum ETFs reached $332.9 million last Friday, inflows have since decreased significantly.
Is the Bullish Demand Waning?
While some may interpret this discrepancy as a reduction in demand, it’s important to remember that demand can fluctuate daily.
Nevertheless, the above trends do underscore the diminishing bullish sentiment surrounding ETH over the weekend.
Despite signs of weakening demand from large holders and Ethereum ETFs, spot flows paint a slightly different picture.
In the past 24 hours, spot inflows totaled $285 million, with $252.69 million on November 3rd.
The positive spot flows have aligned with ETH’s price movements, aiding the cryptocurrency’s recent recovery.
At the time of writing, ETH is trading at $3,731, bouncing back from initial selling pressure earlier in the week. Nonetheless, concerns of a retracement are mounting for one critical reason.
ETH’s price action has formed a bearish divergence with the RSI, indicating the potential for a notable pullback.
A retracement from current levels could see prices dropping towards the $3050 support level, one of the cryptocurrency’s more recent key levels.