- Grayscale’s ETHE $111 million exodus sparked net outflows for ETH ETFs last week.
- Ethereum whales have been distributing their holdings since July.
- Ethereum could see a rejection around the $2,400 resistance level.
Ethereum (ETH) is up 2.5% on Monday as the top altcoin attempts to recover from the selling pressure of exchange-traded fund (ETF) investors and top whales.
Daily digest market movers: Ethereum ETFs outflows, whale distribution
Ethereum ETFs posted a net outflow of $98.1 million last week following ETH’s price struggles. The US spot ETH ETFs — led by Grayscale ETHE’s $111 million exodus — dominated the negative flows after recording outflows for all its trading days in the week.
The outflows align with a similar attitude among Ethereum whales with holdings of >10K ETH. Glassnode data revealed that this cohort has been selling or redistributing their holdings since July. Recent whale activity confirms the data, as Hong Kong-based asset manager Metalpha deposited 10K ETH worth $23 million to Binance a few hours ago. The asset manager has transferred 23.58K ETH to Binance for an average price of $54.1 million in the past three days.
Additionally, a potential Ethereum Foundation wallet sold 450 ETH for 1.029 million DAI in the past 24 hours, per SpotOnChain. Notably, the Foundation has often sold at price tops, considering the decline that followed several of its past sales.
Ethereum co-founder Vitalik Buterin may have also been selling ETH:
The multi-signature wallet that got $ETH from @VitalikButerin is on a selling streak!
After receiving 3,800 $ETH ($9.99M) from Vitalik on Aug 9 and 30, it’s been cashing out, selling 760 $ETH for 1.835M $USDC at ~$2,414 per ETH. The latest sale happened just 21 hours ago.… pic.twitter.com/ELcjpPSg4K
— Spot On Chain (@spotonchain) September 9, 2024
On a positive note, Ethereum recorded a 4-month high in network growth after it added 126,210 new wallets on Sunday.
ETH technical analysis: Ethereum could see rejection around $2,400
Ethereum is trading around $2,330 on Monday, up 2.5% on the day. In the past 24 hours, ETH has seen over $30 million in liquidations, with long and short liquidations accounting for $8.83 million and $21.51 million, respectively.
Ethereum resumed the week attempting to recover from Friday’s price decline. The decline saw ETH lose the $2,400 support level and fall inside another key rectangle. As a result, the $2,400 price level has flipped to become the resistance of this rectangle, with its support level around $2,100.
ETH/USDT 4-hour chart
On the road to recovery, ETH may see a rejection around the $2,400 resistance, supported by the 50-day Simple Moving Average (SMA).
On the downside, a breach of the $2,100 support could send ETH toward the $1,550 price level.
On the 4-hour chart, the Relative Strength Index (RSI) indicates rising bullish momentum after crossing above its midline. The Stochastic Oscillator has crossed into the oversold region, meaning a slight correction may be imminent.
In the short term, ETH could rise to $2,365 to liquidate positions worth $47.09 million.
