Ethereum [$ETH] has faced renewed selling pressure after large holders reduced their positions by roughly 550,000 $ETH, valued at nearly $880 million, over the past week. The scale of the distribution reflected growing caution among major market participants and increased the available supply entering the market.
As a result, Ethereum lost ground and slipped toward the $1,560 support area highlighted on the daily chart. The decline also aligned with weakening market structure after Ethereum failed to reclaim higher resistance levels earlier this month.
Instead of attracting aggressive follow-through buying, each recovery attempt encountered renewed selling pressure.
Buyers returned despite aggressive whale selling
Spot Taker CVD presented a different picture from the whale activity.
At the time of writing, Taker Buy Dominant indicated that market buyers had regained control of executed spot orders despite the sizeable distribution from large holders. This shift suggested that retail participants and smaller investors absorbed part of the additional supply entering the market.
Buying interest strengthened near support instead of disappearing after the decline. Even so, the renewed demand had not yet translated into a decisive breakout because whale selling remained substantial throughout the week.
Buyers therefore faced the difficult task of overcoming persistent overhead supply before Ethereum could establish a stronger recovery.
Ethereum fights to protect a major support
Ethereum revisited the $1,560 demand zone after completing a sharp decline from the $2,000 resistance region.
The daily chart showed buyers responding every time price approached this area, preventing another immediate breakdown. That repeated defense suggested the level continued attracting demand despite broader market weakness.
At press time, the RSI remained below the neutral 50 level and printed around 33, showing that bullish strength had not fully recovered. Despite that, the indicator stayed above its recent low, suggesting selling pressure had eased compared with the earlier collapse.
Price also continued forming higher rebounds from support, although it still traded beneath the major resistance levels at $1,800 and $2,000. If buyers continued defending the current zone, Ethereum could attempt another recovery toward those resistance levels.
However, losing $1,560 would likely expose the market to another leg lower before stronger demand emerged.
Liquidity barrier could shape Ethereum’s next move
The Binance $ETH/USDT Liquidation Heatmap showed the largest concentration of liquidity sitting around the $1,590-$1,600 region.
Those dense liquidation clusters represented the closest obstacle above the current market price and highlighted where volatility could increase if Ethereum continued recovering.
Price had already approached this area several times without producing a sustained breakout. That behavior indicated sellers remained active around the liquidity pocket even as buyers defended lower levels.
Clearing the $1,590-$1,600 cluster could trigger additional short liquidations and encourage price to challenge the next resistance near $1,800. Otherwise, repeated rejection inside that zone would strengthen the case for another retest of $1,560, where buyers would once again need to absorb renewed selling pressure.
Can $ETH regain control?
Ethereum showed signs of stabilization after buyers defended the $1,560 support despite heavy whale selling. Spot demand also strengthened, offering an encouraging signal beneath the surface.
However, the market would likely need to clear the $1,590-$1,600 liquidity barrier before any broader recovery could develop. Failing to overcome that zone could keep Ethereum trapped near support and increase the risk of another downside test.
Final Summary
- Ethereum whales distributed 550,000 $ETH as buyers continued absorbing supply near the $1,560 support.
- Spot buying strengthened despite whale selling, while heavy liquidity remained concentrated around $1,590–$1,600.
