Ethereum slips below $2K while whale selling spikes

Ethereum [$ETH] has traded within a descending channel since its rejection near $2,300 weeks ago. As a result, the altcoin lost the key $2,000 support level and fell to a local low of $1,954.

With $ETH trading below $2,000, large holders appeared increasingly defensive as market weakness persisted.

Why are whales selling Ethereum?

Ethereum’s [$ETH] struggle below $2,000 coincided with a rise in large sell-side transactions.

According to Lookonchain, one investor deposited 5,000 $ETH worth $9.8 million into Kraken. The move appeared aimed at limiting further losses.

The wallet accumulated 5,003 $ETH two months ago at an average price of $1,999. The transfer locked in an estimated $200,000 loss.

Another long-term Ethereum holder sold 5,000 $ETH for roughly $10 million, according to Onchain Lens. The same entity has now offloaded 60,000 $ETH worth $122.25 million in total.

Source: Arkham

On top of that, a Fenbushi-linked wallet deposited 11,101 $ETH worth $21.94 million into Amber Group’s deposit wallet.

According to Arkham data, these holdings were accumulated between February and April 2024 at an average price of $3,039. If sold, the position would realize an estimated loss of $11.79 million.

Combined, the three entities moved 21,101 $ETH worth nearly $41.94 million to exchanges and deposit wallets.

That activity suggested confidence among large holders remained weak during the recent downturn.

What are $ETH traders betting on?

The bearish tone extended beyond the Spot market and into derivatives trading.

According to Onchain Lens, one trader opened a 21,948 $ETH short position using 10x leverage. The position carried a notional value of approximately $44 million.

This was not an isolated case.

The overall Long/Short Ratio declined to 0.97, indicating that short positions slightly outnumbered longs across the broader market.

Source: CoinGlass

Even so, traders on Binance and OKX remained relatively optimistic as exchange-specific ratios stayed elevated.

Heavy short positioning could discourage participation. At the same time, it increases the possibility of a short squeeze if sentiment shifts suddenly.

Is $ETH at risk of more losses?

Ethereum remained under strong downward pressure at press time. The Average Directional Index (ADX) climbed to 44, while the Negative Directional Index (-DI) stood at 26.

Source: TradingView

Historically, elevated ADX readings during a downtrend have reflected strong trend strength rather than exhaustion.

If selling pressure persists, $ETH could retest lower support near $1,845.

However, a recovery above $2,100 may force short sellers to unwind positions. That scenario could provide momentum for a broader rebound.

Final Summary

Ethereum fell below the key $2,000 level after trading inside a descending channel, weakening short-term market structure.

Three large entities moved 21,101 $ETH worth nearly $41.94 million, showing rising whale selling pressure.