The selloff experienced earlier this week has subsided over the past two days, with Bitcoin and Ether stabilizing around key support levels.
Bitcoin is trading around the $92k region, while Ether has established support above $2,800.
The market volatility remains as Ethereum whales begin to show signs of weakness following the sustained market decline.
Ethereum whales show signs of weakness
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Ether, the native coin of the Ethereum blockchain, is down 2% in the last 24 hours and is currently trading at $3,005 per coin.
The bearish performance comes as Ethereum whales, addresses with a balance of 10K-100K ETH, have begun to decline due to the ongoing market selloff.
Data obtained from CryptoQuant reveals that these wallets have reduced their collective balance by over 150k ETH since the start of the week.
The selloff comes as Ether’s price is trading around its realized price or cost basis of $2,900, with most traders selling at break-even or cutting their losses.
If Bitcoin breaks below the $2,800 support level, the second-largest cryptocurrency by market cap could record further losses in the near term.
However, if the whales begin defending the support level and accumulate more ETH coins, the price could surge higher over the next few days and weeks.
Analysts point out that a key level to watch is the cost basis of wallets with no record of selling activity.
Currently, this price stands at $2,860. In the past, Ether has recorded significant recovery once the price hits the cost basis of those wallets.
If that happens in this cycle, Ether could establish strong support around the $2,800 psychological level.
In addition to that, ETH’s Network Realized Profit/Loss metric obtained from Santiment data reveals that investors booked over $1 billion in losses in the past week.
This data suggests that most of the selling pressure comes from investors trying to cut losses.
Finally, Ethereum ETFs on Wednesday extended their outflow streak to seven consecutive days, with over $1 billion recorded in outflow during that period.
According to Coinglass, Ether led crypto liquidations in the last 24 hours, with $215 million in total, with long liquidations reaching $186 million during that period.
Ether could retest the $2,800 support level
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The ETH/USD 4-hour chart remains bearish and efficient as Ether has lost 2% of its value in the last 24 hours.
On Wednesday, Ether bounced near the $2,850 support after a rejection at the $3,100 resistance.
The leading altcoin could dip towards the $2,800 psychological level as it fails to take out the $3,100 resistance once again.
The RSI of 42 is below the neutral 50, indicating that the bears remain in control of the market.
The MACD lines are also within the negative territory, suggesting a bearish trend.
If the bearish trend continues, ETH could retest the $2,800 support level in the near term.
Failure to defend this level could push ETH toward the $2,380 support level.
However, if ETH closes the daily candle above $3,100, it could rally towards the $3,470 resistance level in the near term.
