Ethereum (ETH) has seen sharp declines in recent days, forcing some of the largest cryptocurrency holders to liquidate significant amounts of their holdings. According to market tracker LookonChain, Ethereum price has fallen 18.35% from its Monday high of $4,109, forming a bearish engulfing pattern on the daily chart.
According to recent updates, ETH has lost over 7% today alone, and this has led whale holders to part with a large portion of their holdings to pay off their debts. At the time of publication, the second-largest cryptocurrency by market capitalization is trading at $3,390, with its 24-hour trading volume increasing by 14%, indicating increased market activity.
Whales dump and buy millions in Ethereum holdings
LookonChain reported that a whale deposited 22,746 ETH, valued at $77.7 million, on Binance in the early hours of Friday to withdraw stablecoins and pay debts on decentralized finance platforms Spark and Aave. In total, this whale has moved 31,968 ETH, worth approximately $108.3 million based on current valuations, to Binance in the last two days.
The recent price drop forced whales to sell $ETH to pay off their debts.
A whale deposited 22,746 $ETH ($77.7 million) on #Binance in the last 5 hours and withdrew stablecoins from #Binance to pay debts on #Spark and #Aave.
And this whale has deposited a total of 31,968 $ETH ($122.3 million) in… pic.twitter.com/vhw9J1KTkP
– Lookonchain (@lookonchain) December 20, 2024
Another whale deposited an even larger amount of 49,910 ETH, worth $170 million, on Binance hours ago. This individual subsequently withdrew $137.8 million in stablecoins from the exchange, likely to pay off the debt.
In the seven days leading up to December 18, Ethereum whales holding between 1,000 and 10,000 ETH collectively reduced their holdings from 13.47 million ETH to 13.41 million ETH. This settlement represents 60,000 ETH downloaded, valued at over $200 million.
According to data from CoinGlass, Ethereum liquidations have exceeded $190 million in the last 24 hours, with long and short trading positions of $165 million and $25 million, respectively. The coin’s open interest (OI) percentage has decreased by 7.4%, following the current trend of the crypto market, which is trading in the red.
Despite this widespread selling activity, not all whales are taking bearish positions. World Liberty Finance, an entity reportedly associated with President-elect Donald Trump’s financial companies, spent 2.5 million USDT to acquire 722 ETH on Thursday.
After the $ETH price crash, #Trump’s World Liberty (@worldlibertyfi) spent 2.5 million $USDT to buy 722 $ETH again 2 hours ago.https://t.co/AmeIF2plRb pic.twitter. com/UwI88MfoUK
– Lookonchain (@lookonchain) December 20, 2024
Additionally, another prominent whale linked to Longling Capital strategically purchased 6,000 ETH during the dip. Known for its accuracy in market timing, this whale has reportedly racked up profits of $83 million by capitalizing on Ethereum price fluctuations.
Ethereum faces resistance at $4,000
Ethereum’s recent struggles highlight the challenges it faces in breaking the $4,000 mark. The level has acted as strong weekly resistance throughout 2024, and the cryptocurrency is facing its third rejection at this price this year alone.
Historically, the $4,000 resistance has been tested five times since 2021, but a sustained bullish break above this level remains elusive. Market data from CoinGlass shows that Ethereum futures open interest hit a record high of $28.70 billion on December 17, but has now fallen to $25 billion.
While futures traders predominantly held long positions throughout November, sentiment has changed with the recent price decline.
For the first time since November 6, the aggregate premium for futures positions has turned bearish, indicating an increase in short positions relative to long positions. This change has added downward pressure on ETH prices, pushing them once again below the $4,000 threshold.
Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
