Ethereum recently fell below the $2,000 mark, with bearish signals increasing in both the spot and derivatives markets. On-chain tracking data shows that some large holders have begun transferring ETH to trading platforms and deposit wallets, fueling concerns about further short-term weakness.
The whales transferred in nearly $42 million.
According to Lookonchain, an investor transferred 5,000 ETH to Kraken, worth approximately $9.8 million at the time. This address had established a position two months prior at an average price of around $1,999, meaning this transfer resulted in a paper loss of approximately $200,000.
According to Onchain Lens, a long-term holder sold 5,000 ETH for approximately $10 million. This entity has sold a total of 60,000 ETH, with a total value of approximately $122.25 million.
In addition, a wallet associated with Fenbushi transferred 11,101 ETH, worth approximately $21.94 million, to the Amber Group deposit wallet. Arkham data shows that this position was established between February and April 2024, with an average cost of approximately $3,039. If sold, the paper loss would be approximately $11.79 million.
- A total of 21,101 ETH were transferred into the three addresses.
- The corresponding total value is approximately US$41.94 million.
- Funds mainly flow to trading platforms and deposit wallets.
Short positions continue to increase
The bearish sentiment isn't limited to the spot market. Onchain Lens reported that a trader established a short position of 21,948 ETH with 10x leverage, a notional value of approximately $44 million.
Broader derivatives data also shows that short sellers have a slight advantage in the market. The overall long/short ratio has fallen to 0.97, meaning that short positions slightly outnumber long positions. However, the long/short ratios on Binance and OKX platforms remain relatively high, indicating that some traders have not yet fully shifted to a unified bearish view.
Increased short positions typically suppress short-term risk appetite, but a sudden rebound in market sentiment could trigger short covering, amplifying the price rebound.
The next support level is seen at $1845.
In his article, AMBCrypto mentioned that ETH had previously encountered resistance near the $2,300 level and subsequently continued to trade within a downward channel, even dipping to a low of around $1,954.
According to the technical indicators cited in the article, the Average Directional Movement Index (ADX) has risen to 44, and the Negative Directional Index (-DI) is at 26, indicating that the current downward trend remains strong. If selling pressure continues, ETH may retest the support level around $1845.
If the price rises back above $2,100, some short positions may be forced to close, which could lead to a more significant rebound in the price.
