Ethereum whale dumps $72mln: Assessing if ETH support holds at $2k

Ethereum traded within a descending channel after its uptrend stalled at $2.3k two weeks ago. During this decline, the altcoin dropped to $2,009 before rebounding slightly.

At press time, Ethereum [ETH] traded at $2,106 after falling 0.62% over the past day. With ETH hovering near $2k, whale activity reflected growing bearish sentiment.

Why are whales turning bearish?

Onchain Lens reported that a whale sold 15,000 ETH for $31.12 million. This whale has been aggressively selling over the past day. 

Over this period, the whale has offloaded 35,000 ETH for $72.3 million at an average price of $2,066 per ETH. 

When a whale sells during a period of weakness, it signals a lack of confidence in the market, as it anticipates further losses. Usually, when whale selling increases, as assets perform poorly, the downside risk strengthens further.

Interestingly, even those actively entering the market expect prices to drop. As such, whales are aggressively shorting the market.

According to Lookonchain, a trader opened a 23x-leveraged short position on 47604 ETH worth $100.3 million, with a $2149 liquidation price. The whale’s taking such a huge bet shows elevated bearish sentiment in the market.

With whales turning bearish, Exchange Inflows also increased sharply over recent days. 

According to CryptoQuant, Exchange Netflow remained positive for two straight days. At press time, Exchange Netflow stood at 33.4k ETH, down from 43k ETH previously.

Elevated inflows typically indicate growing selling activity as traders move assets onto exchanges. That shift aligned with weakening buyer demand across the market.

Can ETH defend the $2k support?

Ethereum’s weakness also reflected declining capital inflows across the ecosystem.

According to DeFiLlama, net inflows dropped sharply from $755 million to just $13 million.

Such a steep decline suggested investors largely stayed on the sidelines, reducing momentum further. In fact, momentum indicators also remained bearish.

The Stochastic Momentum Index (SMI) stayed in negative territory for nearly two weeks. Meanwhile, the DMI Modified remained negative for twelve consecutive days.

That prolonged weakness suggested sellers still controlled market momentum.

If bearish pressure continues, Ethereum could lose the $2k support level and fall toward $1,930. However, reclaiming $2.3k could invalidate the bearish outlook and weaken selling momentum.

Final Summary

• Ethereum whales sold over 35,000 ETH worth $72.3 million as bearish sentiment intensified near the $2k level.
• Weak capital inflows and negative momentum indicators suggested Ethereum’s downtrend could continue without stronger demand.