Recent on-chain data and trading activity suggest Ethereum is experiencing significant selling pressure. Understanding who is selling and why can provide valuable insight into current market dynamics and potential future trends.
Increased Activity from Long-Dormant Wallets
According to blockchain analytics firm Glassnode, Ethereum’s active address metric recently reached a new all-time high. This jump in activity often indicates that long-term holders are moving their tokens, potentially preparing to sell.
When dormant wallets become active during periods of weak market demand, it typically adds downward pressure on the price. This trend suggests that some early investors or long-term holders may be taking profits or reducing exposure.
Decline in Network Activity and Demand
Data from DeFi Llama shows a noticeable drop in Ethereum’s on-chain activity over the past week. The total value of transactions fell sharply, reflecting reduced user engagement and network demand.
Weak buying momentum combined with declining capital inflow creates a challenging environment for price recovery. If selling continues, ETH could test support levels near $2,185 or even revisit May’s lows.
Ethereum ETFs See Net Outflows
Farside Investors reported a net outflow of $11.3 million from Ethereum exchange-traded funds (ETFs) on June 20. One fund alone saw outflows of $19.7 million, though two others recorded modest inflows.
This mixed but overall negative flow from institutional products highlights short-term caution among larger investors. ETF movements often serve as a sentiment indicator for the broader market.
Liquidation Spike in Derivatives Markets
In the past 24 hours, Ethereum futures contracts saw total liquidations worth $170 million, with long positions accounting for $157 million of that amount. This indicates that leveraged traders betting on price increases were caught off guard by the downturn.
Additionally, Santiment data shows ETH is moving into centralized exchanges at an above-average rate. This often signals that holders may be looking to sell. If buying volume doesn’t match this incoming supply, further short-term price declines are likely.
Key Resistance at $2,500
Technical analysis shows that Ethereum is currently facing strong resistance around the $2,500 level. Short-term moving averages are aligned bearishly, suggesting continued selling pressure.
A break above the $2,800–$2,850 range could open the path toward $3,000, especially if supported by new ETF inflows. However, stronger buyer participation is needed for a sustained upward move.
Should macroeconomic conditions worsen or selling intensify, ETH may fall toward the next major support near $2,280.
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Frequently Asked Questions
Q: Why are dormant Ethereum wallets becoming active now?
A: Dormant wallets often reactivate during periods of high volatility or price decline. Holders may decide to sell after a long holding period, especially if they anticipate further downside.
Q: How do ETF flows affect Ethereum’s price?
A: Significant outflows from Ethereum ETFs can increase selling pressure and influence market sentiment. Inflows typically indicate institutional confidence and can support the price.
Q: What does high liquidation volume mean?
A: High liquidation volume, especially on long positions, suggests that many traders were betting on a price increase that didn’t happen. This often leads to rapid short-term price drops.
Q: Is now a good time to buy Ethereum?
A: Market conditions are currently bearish in the short term. While prices may be lower, potential buyers should monitor key support levels and overall market sentiment before entering.
Q: What are the major support levels for Ethereum?
A: Important short-term support lies near $2,280. If broken, the next key level could be around $2,185, based on recent price action and historical data.
Q: Can Ethereum recover to $3,000 soon?
A: A move toward $3,000 would require a break above $2,850 with strong volume and positive ETF flows. Current market structure makes this challenging in the immediate term.