Ethereum Price Drops 8% Amid $10.3 Billion Sell-Off

Ethereum's Taker Sell Volume experienced a significant surge, reaching $10.3 billion, indicating substantial market-wide sell pressure from both whales and retailers. This intense selling activity caused Ethereum's price to drop to $2.3K before recovering to $2.4K as dip-buyers absorbed the bearish wave.

Over the past week, Ethereum has been trading within a descending channel, with the price struggling to stay afloat due to intensified profit-booking. This resulted in a sharp increase in downside pressure, with the price touching a low of $2.3K. The more ETH hovered in a narrow band, the more holders chose to offload, revealing waning conviction.

According to CryptoQuant analyst Maartun, Ethereum witnessed a significant spike in selling pressure. Ethereum’s Taker Sell Volume across all exchanges surged significantly, recording over $321.3 million in one minute. This marked intense sell-side aggression, with both whales and retailers contributing to the spike in volume. In total, ETH recorded $10.3 billion in Taker Sell Volume before cooling to $839.6 million. This level of activity often mirrors fear or aggressive profit-taking.

The panic wasn’t just reflected in trade volumes. ETH also recorded 1.2 million coins in Exchange Inflows, mostly from whales. When looking at Large Holders Netflow, the data indicated that whales sold 519k ETH while buyers scooped 471k ETH. This leaves a negative netflow of -48.75k ETH, signaling a higher selling activity from Ethereum large holders. Such negative Netflow, paired with rising inflows and elevated Sell Taker Volume, spelled out strong bearish sentiment. Either holders were locking in profits or scrambling to cut losses.

This surge in selling activity impacted ETH’s price movement, briefly slipping from $2.5K to $2.3K. However, as of this writing, Ethereum recovered to $2,424. This mild rebound hints that some buyers saw an opportunity to buy the dip, absorbing the pressure and halting further downside, at least for now. Interestingly, Exchange Netflow turned negative, with outflows beating inflows by about 3.4K ETH. Simply put, Ethereum buyers have entered the market and absorbed the recently witnessed selling pressure. Yes, that is typically a bullish sign.

That said, the battle isn’t over. ETH has returned to a consolidation zone, where bulls and bears appear locked in a short-term stalemate. Therefore, if the bulls can hold their positions, it will boost ETH to reclaim $2575, which is a key level to keep bullish momentum alive. Conversely, if sellers retake the market once again, ETH could dip to $2350.