Ethereum price remains in a deep bear market after falling by over 41% from its highest point this year. It was trading at $2,420 on Tuesday, down from the year-to-date high of $4,090, underperforming other top coins like Bitcoin and Solana.
Ethereum whales are dumping
There are signs that some of the biggest Ethereum whales are selling the coin as its price continued to retreat.
According to Lookonchain, an Ethereum whale deposited 11,456 tokens worth $27.8 million to Binance on Tuesday. Depositing tokens to a centralized exchange like Binance is the first step that holders take before selling.
Meanwhile, another whale associated with the Ethereum Foundation deposited 1,250 tokens to Bitstamp, another top exchange. The whale received 51,25o tokens from the foundation in 2015.
Another whale who participated in Ethereum’s Initial Coin Offering (ICO), has continued to sell his Ether tokens in the past few weeks.
Vitalik Buterin and Ethereum Foundation have also sold thousands of tokens in the past few months. In most periods, cryptocurrencies tend to drop when whales or big holders are selling their tokens.
Ethereum has faced substantial challenges this year. For one, data by SoSoValue shows that spot Ethereum ETFs have not gained traction among investors. All Ether ETFs now have over $6.7 billion in assets, a figure that is smaller than what the Grayscale Ethereum Trust (ETHE) before the ETF approvals.
The cumulative Ethereum ETF outflows stand at over $553 million while spot Bitcoin ETFs have added over $18.5 billion in assets. The iShares Ethereum Trust (ETHA) has $991 million in assets followed by the Grayscale Mini Ethereum ETF (ETH), which has $956 million.
Ethereun’s network is also facing substantial competition from layer 1 networks like Sui, Solana, and Tron. It is also seeing major competition from layer-2 networks like Base, Arbitrum, and Optimism.
Ethereum price analysis
Ethereum price chart by TradingView
Ethereum’s daily chart is flashing red, pointing to more downside in the near term. It formed a double-top chart pattern around the $4,000 level, and is now below its neckline at $2,817.
Ether also formed a death cross pattern as the 200-day and 50-day Exponential Moving Average (EMA) crossed each other.
Most importantly, it has formed a bearish pennant chart pattern, a popular risky sign. It has also moved below the 61.8% Fibonacci Retracement point. Therefore, Ether will likely continue falling as sellers target the next point at $2,117, its lowest point in August.
Read more: Ethereum Price Crash Triggers $69m in Liquidations
