Ethereum Drops 10% Amid Whale Accumulation and ETF Outflows

Ethereum's price has shown signs of stress, with a potential push below the key level of $2,500. After two weeks of steady accumulation and strong ETF inflows, the cryptocurrency's price has dropped from over $2,800 to $2,531.5. This sharp decline has triggered a wave of liquidations and a decrease in market leverage, raising concerns about the strength of the next support level at $2,500.

Despite recent whale activity, which saw large Ethereum holders accumulate approximately 166,199 ETH through over-the-counter (OTC) transactions valued at around $435 million, the market sentiment has not improved. Nearly 140,000 ETH has also left centralized exchanges during this period, suggesting rising on-chain accumulation. However, the average purchase price for these transactions was $2,618 per ETH, which is higher than the current price. Notable acquisitions include a major OTC deal on June 4, where 108,278 ETH worth $283 million was purchased, and additional buys on June 13 and June 14.

The continued whale accumulation appears to be a long-term strategy, as most of these purchases were made above the current price. The buying trend persists even as the broader market shows signs of correction and selling pressure increases. Ethereum's price has dropped nearly 10% over the last week, currently trading at $2,531.5.

Spot Ethereum ETFs recorded net outflows of $2.1 million on Friday, ending a 19-day streak of consecutive inflows. This shift comes after the ETFs accumulated $1.4 billion during the streak, signaling a possible change in investor sentiment. Data shows that Fidelity Ethereum ETF led the outflows with $8.8 million, while the mini Grayscale Ether ETF saw $6.7 million in inflows. All other U.S.-listed Ethereum ETF issuers reported no flows, resulting in the net outflow. Despite this daily dip, weekly inflows remain elevated, with spot Ethereum ETFs bringing in over $500 million last week, nearly five times the recent average. This suggests that while momentum has slowed, institutional interest continues to be present.

BlackRock’s iShares Ethereum Trust, a leading Ethereum ETF, reported no inflows for the first time in 14 days. Its net flows since inception remain at $5.2 billion, with 1.65 million ETH held. The ETF's stock dropped nearly 7% on Friday amid selling pressure, closing under $20 during heightened geopolitical tension.

Ethereum's price is currently trading at $2,527.7, after opening at $2,538.7 in the latest 4-hour candle. The price exhibits a bearish arrangement, having declined sharply out of $2,800, making lower highs and lower lows. On June 13, a bearish engulfing candle formed and initiated strong selling pressure, and then the market consolidated around $2,520 -$2,530, which could be considered a possible support level. MACD indications depict the MACD line at -19.6 and the signal line at -16.2, which is bearish in its crossover. However, the bars of the histograms are becoming narrow, which is an indication that the selling strength may be lost. RSI is at 38.15, still in bearish territory but with a little bullish divergence, indicating possible first signs of a stabilization process.

The area of support is at $2,520 and more support at $2,480. The levels of resistance are observed at $2,600 and at $2,720 2740. The volume surged in the recent decline but has since subsided, indicative of a tentative market. As long as the price is above $2,520, there might be a reversal; otherwise, a drop below might aim towards $2,400.