Ethereum Whales Dump $89M in ETH as Price Tests Critical Support

Ethereum (ETH) Price Tests Critical Support as Whale Profit Ratios Return to Bear Market Levels

Ethereum's price has been under pressure in recent weeks, with prices hovering near the critical $2,000 level amidst increased selling activity from large holders. Data indicates that major players in the market are reducing their positions while technical indicators point to potential continued weakness.

A prominent Ethereum whale that received compensation during the Genesis Trading liquidation in August 2024 has sold 40,000 ETH worth approximately $89.9 million through over-the-counter trades within just two days. According to information from Arkham Intelligence, this address had received 114,500 ETH valued at $358.19 million during the liquidation process but has now sold nearly 30% of these holdings.

The timing of this large sale coincides with Ethereum’s price falling more than 13% over a one-week period. This downward movement has raised concerns about price stability in the near term as other market indicators also flash warning signs.

Data from CryptoQuant reveals that the unrealized profit ratio among Ethereum whales has dropped to levels not seen since the previous bear market. This metric measures the profit status of current ETH holdings. Despite Ethereum’s price being roughly twice as high as during the bear market, many whale positions are now yielding similar profit levels as before.

Particularly concerning is that the whale cohort holding between 1,000 and 10,000 ETH has reverted to a negative unrealized profit ratio. This suggests these large holders are currently underwater on their investments, which could motivate further selling if prices continue to decline.

Exchange deposit metrics further support the bearish outlook. On-chain data shows that over the last two weeks, investors have moved more than 60,000 ETH to exchanges. Such movements typically suggest preparation for selling, as cryptocurrencies need to be on exchanges to be converted to other assets or fiat currencies.

The weekly Relative Strength Index (RSI) for Ethereum has fallen to 35.87, its lowest reading since May 2022. Crypto analyst Jesse Olson pointed out that in May 2022, when the RSI reached similar levels, ETH subsequently dropped another 60%. If