In the previous week, Ethereum whales sold a total of 143,000 ETH tokens. This move has marked a shift in the market and captured the attention of traders and investors. The sell-off comes amid price pressure and concern about Ethereum’s near-term trajectory.
Ethereum Sell-Off and Market Impact
Ethereum holders, including those at Galaxy Digital, transferred ETH to exchanges like Binance and Coinbase, according to Lookonchain data. Galaxy alone transferred almost 50,000 ETH valued at approximately $79 million in the past week. This round of selling also saw whales offloading a total of 143,000 ETH, valued at approximately $230 million, suggesting a widespread sell-off among key players.
Smaller investors have followed suit, with some selling at a loss and indicating widespread caution. Concurrently, the Ethereum price has stagnated near $1,600, due to market outflows and ETF outflows in the U.S. market.
Ethereum’s recent sell-off has elicited varied reactions within the market. Despite a 15.95% loss over the past month, the ETH price showed a slight return, trading near $1,639, with increasing volume indicating active trading. This shows that some buyers are coming in, though the general sentiment remains cautious.
Data shared by crypto expert Ali Martinez on X illustrates the scale of this activity and its potential impact on the market. Traders are closely monitoring for a possible bounce or further decline, as technical indicators point to an important support zone. The price action highlights uncertainty as investors weigh current pressures against hopes for stabilization.
Broader Investor Behavior
Investor behavior around Ethereum (ETH) indicates a clear pattern of caution. Large holders are shifting ETH into derivative markets, suggesting they are hedging or taking short positions ahead of potential price decreases.
Moreover, Ethereum ETFs have seen a recent outflow of $12.1 million, indicating broad risk aversion. A selling pressure such as this reflects a market preparing for volatility in light of economic and geopolitical uncertainties.
Ethereum’s Pectra upgrade, scheduled for May 7, 2025, promises enhancements including quadrupled layer 2 throughput and the option to pay gas fees in stablecoins like USDC. It also increases the staking cap from 32 to 2,048 ETH, aiming to boost institutional participation. These upgrades could reduce network congestion and lower fees, perhaps enticing users and developers as Ethereum seeks to regain momentum.
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