Ethereum is under significant selling pressure after its latest attempt to recover from a multi-month low earlier this month. The cryptocurrency has been on a three-week retreat, retesting the critical $2,819 threshold that previously served as a key support level. However, this support has turned into resistance, leading to a rejection that signals a potential downside for ETH.
The bear market structure remains the same
The range context for Ethereum is still not good from the short-term perspective. The coin has formed lower highs and lower lows since reaching the $4,000 mark and has been retracing its losses over the past three weeks. However, the rejection at the $2,819 resistance zone over the weekend indicates that the bears still have the upper hand.
The current price action is the same, suggesting that the bearish trend of Ethereum will resume if the $2,819 level remains the limit for further upside. There is clear new selling pressure around this resistance area of $2,819, and a break above it has not yet been confirmed.
This price weakness leaves ETH at risk of further downside, with support at $2,509 and a monthly low at $2,132.
Whale Exit Position in Loss
Following the Ethereum price drop, several large holders, commonly referred to as “whales,” have closed out their positions after seeing significant losses. As reported earlier today by Lookonchain, one whale sold 5,088 ETH, or $13.58 million, resulting in a loss of $3.66 million.
Another whale sold 5,088. $Ethereum($13.58 million) Lost $3.66 million 6 hours ago!
This whale withdrew 5,088. $Ethereum($17.24M) from #Binance $3,389 from March 28 to April 3. https://t.co/wecLHHWDDL pic.twitter.com/Y4hbRHmPZg
— LookOnChain (@lookonchain) August 27, 2024
The whale had previously withdrawn the same amount of ETH from Binance between March 28 and April 3, when the price was $3,389. The timing of this selloff suggests that the whale’s initial intention may have been to hold onto the asset for potential gains. However, the market decline resulted in significant losses, forcing a selloff.
Along with other large single interactions, another whale deposited 8,825 ETH, or about $24 million, into the Binance exchange a few hours ago. This incident resulted in a loss of $3.96 million.
One whale deposited $8,825. $Ethereum($24M) #Binance I sold it 25 minutes ago and lost $3.96 million!
This whale bought 8,825 of them. $Ethereum($27.96M) from $3,169 #Binance Between July 27th and August 3rd, before the market crash. https://t.co/yA0mOcgOcC pic.twitter.com/nysVeaYaQ5
— LookOnChain (@lookonchain) August 26, 2024
Initially, the whale bought ETH between July 27 and August 3 at an average price of $3,169 per ETH. However, the recent market turmoil caused by the crash has led to these huge losses, which explains the volatility of the cryptocurrency market.
Potential for a massive selloff: Key levels to watch
The recent rejection at $2,819 has raised concerns that a massive selloff could begin, especially if Ethereum fails to find support at the $2,469 level. If this support level is breached, the price could move to $2,132 or even $2,000. Selling volume is very low at the time of writing, but if selling activity increases, the bearish move could intensify.
On the other hand, a recovery above the $2,819 resistance level, which represents the initial collapse level of last month, could provide some relief. If Ethereum reclaims the $3,087 level, the bearish trend could reverse and the stage could be set for a potential recovery. However, until such a recovery occurs, the outlook remains cautious.
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