Ethereum News Today: Ethereum Faces 8% Correction as $335M Sell Volume Sparks Profit-Taking Debate

Ethereum (ETH) experienced a sharp spike in taker sell volume, reaching $335 million within two minutes, according to on-chain data from analyst Maartunn [1]. This event highlights a critical moment in the market, raising questions about whether it reflects strategic profit-taking by large investors or panic-driven selling from smaller participants. Over the past two days, Ethereum has seen heavy selling pressure, contributing to an 8% correction from its recent highs and a drop below the key $3,850 level [1]. The price has now entered a consolidation phase, with bulls defending critical support levels but facing growing concerns about a deeper correction.

The sudden sell-off has sparked speculation about the intentions behind the massive taker sell orders. Some analysts suggest that large investors are locking in gains after Ethereum’s recent rally, while others warn that the market may be witnessing emotional selling triggered by short-term volatility [1]. The price currently remains below its recent local highs, adding uncertainty to the outlook. Analysts are divided, with some viewing the correction as part of a healthy consolidation within a broader uptrend and others cautioning that further declines could push ETH toward the $3,400–$3,500 range if bearish sentiment intensifies [1].

Despite the recent drop, Ethereum’s long-term fundamentals remain intact. Continued growth in decentralized finance (DeFi) usage and increasing adoption of Layer 2 solutions are still supporting the positive narrative for the asset [1]. Large players are also reportedly accumulating during dips, using weaker buying pressure from retail investors to position themselves ahead of expected long-term growth. This strategic activity suggests confidence in Ethereum’s future, particularly as it continues to solidify its leadership in DeFi and real-world asset (RWA) tokenization [1].

Ethereum’s recent breakdown below the critical resistance zone near $3,860 has intensified selling pressure and short-term weakness. On the 4-hour chart, the price has dropped to $3,619, finding temporary support just above the 100-period SMA. The 50-period SMA, currently near $3,762, has turned into near-term resistance, limiting immediate recovery attempts. If bulls fail to reclaim the $3,760–$3,800 zone, further declines toward $3,175 or even $2,852 could become more likely [1]. However, as long as the price remains above the 200 SMA, the broader bullish trend is still in place. Regaining strength above the $3,860 level will be crucial for bulls to reestablish momentum and push toward the $4,000 mark.

The $335 million sell-off underscores the market’s vulnerability but also highlights the presence of larger players stepping in during the volatility. If Ethereum can stabilize and maintain current levels, a renewed push toward $4,000 could materialize as market confidence returns. However, the coming days will be pivotal in determining whether this correction is a temporary setback or the start of a more extended downturn [1].

Sources:

[1] Ethereum Taker Sell Volume Hits $335M In Just 2 Minutes: Panic Or Profit-Taking?

https://www.newsbtc.com/news/ethereum/ethereum-taker-sell-volume-hits-335m-in-just-2-minutes-panic-or-profit-taking/