Ethereum Faces Pressure as Whales Dump Amid Price Dip
Key Takeaways
- Ethereum (ETH) is under pressure – long-term investors are increasingly selling.
- A previously inactive whale recently sold 7,974 ETH worth 11.8 million USD.
- The ETH price dropped below the critical support level of 1,500 USD – a level last seen in 2022.
- On-chain data indicates that ETH is currently undervalued (MVRV ratio: 0.76).
- The risk of renewed capitulation increases if the downward trend continues.
Ethereum Whale Sell-Off: What’s Behind It?
Ethereum is currently experiencing a phase of increased selling activity by so-called whales – large investors who hold significant amounts of ETH. Particularly notable: a wallet that had been inactive for three years recently sold 7,974 ETH at a price of 1,479 USD. This corresponds to a total value of approximately 11.8 million US dollars.
These sales are not random. ETH recently fell below the long-term support level of 1,500 USD – a psychologically and technically important area. Many whales are responding to this price drop by reducing their positions to avoid further losses. They are doing so strategically: instead of a sudden sell-off, the distribution occurs in several tranches.
On-Chain Data Suggests Undervaluation
A look at on-chain metrics shows that Ethereum may currently be trading below its fair value. The so-called MVRV ratio (Market Value to Realized Value) stands at 0.76. This means that the current market price (1,549 USD) is only 76% of the average purchase price of all circulating ETH.
This situation is reminiscent of the summer of 2022. Back then, ETH also fell below 1,500 USD, leading to a capitulation. Within a month, the price dropped to 883 USD. However, a strong recovery followed – ETH rose by 85% to over 2,000 USD by mid-August.
Rising Exchange Reserves Increase Downward Pressure
Another warning sign: in April, around 2 million ETH were transferred net to centralized exchanges. This indicates that many investors are prepared to sell rather than use the current weakness as a buying opportunity. This development argues against a short-term recovery.
Such inflows increase the supply on the market and can further pressure the price – especially if demand remains low. Combined with whale sell-offs, this creates a fragile market environment.
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Renewed Capitulation Possible?
The current market situation shows parallels to that of 2022: ETH is falling below key support zones, long-term investors are selling, and market sentiment is marked by uncertainty. If this trend continues, another capitulation phase could be on the horizon.
A drop below 1,400 USD would not be out of the question. What will be crucial is whether buyers see the current price level as a buying opportunity – or whether the downward spiral continues.
Our Assessment
The recent sell-offs by Ethereum whales are a clear signal: confidence in a short-term recovery is limited. The break below the 1,500 USD mark has revealed technical weakness, which is confirmed by on-chain data. While the MVRV ratio indicates undervaluation, ETH remains vulnerable to further losses without a turnaround in exchange inflows.
If you are invested in Ethereum or planning to enter, you should closely monitor the development of on-chain data and market sentiment. Historically, such phases also present opportunities – but only if the fundamental data stabilizes.
Sources
- Glassnode
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $1,785.93 |
| 24h % | 2.47 % |
| 7d % | 12.61 % |
| 30d % | -13.43 % |
| 60d % | -33.52 % |
| 1y % | -42.95 % |
| Market Cap | $215,316,472,790.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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