Key takeaways
Who is behind the recent wave of dumping?
SharpLink, the first publicly listed company to use Ethereum as its underlying asset.
What is the situation with spot ETFs at the moment?
US Ethereum ETFs recorded a total of $1.022 billion in outflows over the past seven trading sessions.
Ethereum (ETH) is facing increasing selling pressure, with the likes of SharpLink continuing to unload its holdings. This comes against the backdrop of continued outflows from US Ethereum ETFs and rising exchange reserves. In November alone, ETH has already lost more than 20% of its value. He may be ready to extend his losses in the coming days.
according to Onchain lensSharpLink, the first publicly listed company with Ethereum as its underlying asset, sold 10,975 ETH, worth $33.54 million, on the Galaxy Digital OTC exchange.
After the SharpLink deposit, Ethereum’s structure weakened on the charts, as evidenced by ETF outflows and rising ETH reserves on exchanges.
The metric on the chain flashes a downward signal
According to on-chain analytics platform SoSoValue, US Ethereum Spot ETFs have recorded outflows for seven consecutive days.
The data also revealed that total outflows during this period amounted to $1.022 billion, indicating that US investors may be withdrawing capital from these funds. This may indicate waning interest, while reinforcing the bearish outlook.
Source: Soso Value
That’s not all, as crypto participants also appear to be offloading their ETH holdings. In fact, data from CryptoQuant revealed that over the past week, Ethereum Reserves across all exchanges rose significantly – a sign of continued selling by long-term investors and holders.
According to the data, they dumped 152,426 ETH in the past week alone. On the price charts, the impact of this selling is also evident, with the price of ETH falling below $2,900 on the charts.
Source: Cryptoquant
Some traders and investors showed strong interest in the asset, which was reflected in a 22% rise in trading volume to $38.55 billion.
A rise in trading volume while an asset’s price is falling means that market participants may be reinforcing its downtrend.
Ethereum (ETH) price action and technical analysis
According to AMBCrypto analysis, Ethereum is now in a downtrend. After the key support level breaks, further decline is likely. In fact, the price may drop to the $2,750 level.
However, this bearish outlook will only be confirmed if ETH continues to trade below $3,000 on the charts.
It might be possible though. Especially since at the time of writing, the Average Directional Index (ADX) for ETH stands at 43.60 – above the key threshold of 25 – indicating strong directional momentum.
