Ethereum under price pressure: Whale activity is strong and signals a tightening market.
Ethereum (ETH) is entering a challenging phase as its price continues to face downward pressure. This pressure isn't just due to macroeconomic factors; on-chain signals and actions from major investors indicate a clear "tightening" of the current ETH market.
ETH price loses key support zone.
In recent sessions, Ethereum has fallen below the $2,000 mark – a crucial psychological support level. This decline coincided with a significant wave of selling from large wallets, with over 1 million ETH being released onto the market in a short period of time.
Strong selling pressure weakened liquidation and reflected increasing caution among large investors regarding ETH's short-term outlook.
Whale activity creates differentiation.
on-chain data reveals a clear divergence among investor groups in the market. While many Medium sized wallets are reducing their ETH holdings, some large whales are taking advantage of the price weakness to accumulate more.
This reveals two parallel psychological currents:
Small and Medium investors tend to be defensive, taking profits or cutting losses.
Long-term whales are taking advantage of selling pressure to absorb supply, preparing for the next cycles.
However, the whale buying activity has not been strong enough to reverse the overall market trend.
Macroeconomic factors and signals of austerity measures.
Besides on-chain activity, ETH is also affected by an unfavorable macroeconomic environment. Tight monetary policy and risk-averse sentiment have led to a withdrawal of funds from highly volatile assets like cryptocurrencies.
Notably, the Ethereum Foundation also demonstrated a cautious financial stance by selling off a portion of ETH to restructure its budget, prioritizing long-term research and development. While strategic, this move still adds psychological pressure to the market in the short term.
Why hasn't ETH recovered yet?
Despite buying pressure from whales, ETH has yet to surge due to:
The amount of ETH deposited on exchanges remains high, maintaining supply pressure.
Many investors are in a losing position and are ready to sell when prices rebound slightly.
The overall market lacks a sufficiently strong catalyst to trigger new capital inflows.
This causes ETH to tend to move sideways or decline slightly instead of forming a clear uptrend.
Factors to monitor in the coming period
For Ethereum to stabilize and recover, investors need to pay attention to the following:
Developments in monetary policy and the global macroeconomic environment.
Progress and actual effectiveness of Ethereum network upgrades.
on-chain cash flow, particularly changes in whale behavior and the amount of ETH on exchanges.
Ethereum is in a sensitive phase where selling pressure, defensive sentiment, and long-term accumulation strategies coexist. While whales still show confidence in ETH's future, the current market lacks the strong momentum to confirm a sustainable recovery trend.
In the short term, ETH is likely to continue fluctuating around the support zone, awaiting clearer signals from both the macro and internal network factors.
The article Ethereum under pressure in tight market, weakening cash flow first appeared on CoinMoi .
