Ethereum (ETH) price has seen a drop recently, triggering a selloff among whales to repay debts as per reports. Ethereum whales have been active with large deposits being made to Binance.
Blockchain analysis showed that one whale moved 31,968 ETH worth of $122.3 million over the past two days. Another whale made another transaction by staking 49,910 ETH or $170 million within eight hours.
These movements are related to forced liquidations due to the debt repayment by whales on the platforms of Aave and Spark.
Additionally, the Ethereum Foundation also sold off recently, moving 100 ETH from its reserves when ETH price was trading at around $4,000.
In the past year, the foundation has made 32 trades, liquidating 4,466 ETH worth of $12.6 million, and often at market tops.
After these selloffs, ETH price went down by 13% and fell below the $3,300 level, while the liquidations within the last 24 hours have been $226 million.
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Out of the total, $198 million were long positions. Open interest decreased by 10.53 % and fell below $25 billion.
Forced liquidations and bearish sentiment have played their part in this decline. The price of Ethereum had been capped at $4,000 and this led to long position liquidations due to the shift of market sentiment.
In addition, MACD indicator on the 4-hour ETH/USD chart shows bearish pressure after recent sell offs.
The MACD line has crossed the signal line to the downside and the histogram shows worsening with deep red color indicating more selling pressure.
Also, the MACD indicator shows a negative divergence confirming the bearish outlook with price testing lower supports in the coming days.
The Bull-Bear Power (BBP) indicator reinforces bearish market sentiment with the index at -729.15. This indicates that the current market place favours the sellers more than the buyers.
The continued decline in prices below the $3,300 level and the sell off signal of the two indicators, the MACD and BBP means that the bearish sentiment remains dominant.
Spot Ethereum ETFs Experience $60 Million in Outflows
The bearish trend in ETH price also extended to spot Ethereum ETFs as investors pulled out $60 million.
Grayscale’s ETHE accounted for $58 million of these outflows, indicating reduced investor confidence. This is after several days of inflows, thus restoring the previous positive trend.
This is a clear indication that the market is not very certain about Ethereum as the holdings in ETFs reduced. Experts think that this is likely to prolong the process of the asset’s price recovery.
Analysts Predict Support at $2,800 For ETH Price
According to the crypto experts, ETH price might touch $2,800 before finding a stable ground.
Another market analyst Caleb Franzen pointed to an inverse head-and-shoulders pattern that indicates a possible bounce from $2,800 to higher levels.
But it is still possible to see further losses if the bearish sentiment persists.
Despite the selloff, Ethereum options data shows bullish sentiment among some traders. Recent data showed that 173,000 ETH options expired with the Put/Call ratio of 0.5, which implies more people had bought calls than puts.
The max pain price for options was at $3,750 showing interest in a potential recovery zone. Currently, Ethereum price is trading at $3,126 with market capitalization now below $400 billion.
