Ethereum Selling Pressure Surges to Highest Since November - What’s Driving the Exodus?

Ethereum faces its steepest sell-off in nearly a year as institutional wallets unload holdings at unprecedented rates.

Market Mechanics Under Pressure

Whale movements spike as large holders capitalize on recent price stability—classic profit-taking behavior that's shaking retail confidence. Exchange inflows hit levels not seen since last November, creating a supply overhang that could test key support levels.

The Institutional Exodus

Smart money isn't waiting around—hedge funds and crypto-native funds lead the selling charge, perhaps anticipating regulatory headwinds or simply executing quarterly rebalancing (because why hold assets when you can chase performance fees?).

Retail Follows—As Always

Smaller investors typically trail these movements, often buying the top and selling the dip in a beautifully ironic dance of decentralized finance. This time appears no different as social sentiment indicators flash caution across trading forums.

Will ETH weather this storm or continue bleeding out? The market's about to decide whether this is a healthy correction or the start of something uglier—because in crypto, stability is just the pause between dramas.

Usually, ETH fluctuates between buying and selling pressure. Even with large-scale selling, some whales later re-buy at a lower price. However, periods of prolonged selling pressure may lead to a reversed trend. 

ETH faced selling pressure at the end of August

Based on CryptoQuant data, ETH has entered a period of selling pressure at the end of August. The taker buy/sell ratio has skewed toward sellers, meaning traders use the market’s opportunities to shed their ETH at the current level. 

ETH has retained some of the levels achieved in August, as it continued to trade above $4,300. ETH stood at 0.039 BTC, with a market cap dominance of 13.3%. The token traded at $4,313.75, becoming the biggest loser among top 5 assets for the past week. 

The current trading conditions are still raising questions on whether ETH will survive, or face another downturn to a lower range. ETH open interest is still closer to its higher range at $27B, though with shifts in the long/short interest ratio. 

Based on derivative positions on Binance, ETH may trade in a tight range between $4,200 and $4,500. The current available liquidity does not point to a dramatic short squeeze. Despite this, there are suspicions some whales may be keeping the ETH price lower by regular selling. Longer-term predictions expect ETH to attempt a break above $5,000, or see a breakdown to $3,500. 

On Hyperliquid, ETH has a predominance of long positions, making up 64% of open interest. Ethena (ENA) has over 75% long positions, signaling confidence in the bullish direction of ETH. The Ethena project depends on a bullish ETH trend to be the most efficient in producing yield. 

Whales actively move ETH

Daily whale movements still include dramatic shifts and positions. Overall, ETH shows signs of long-term confidence, with DeFi growth and lending expansion. 

Additionally, ETH still sees steep inflows from ETF and treasuries, while accumulation addresses expanded their balance to 24M tokens. Despite this, short-term whale selling can affect the price, as older whales still take profits. 

The past few months saw ETH shift to whale ownership, as retail capitulated. Overall, ETH is showing positive signs for long-term growth, but short-term selling pressure can still lead to liquidations and price setbacks. 

The short-term ETH fluctuations coincide with dramatic whale accumulation, with one entity pouring $185M into ETH in the past days. However, the significant accumulation is yet to translate into new all-time peaks. 

ETH also faces trading in September, a historically weak month for the token. October has mostly ended in the green for ETH, but the coming weeks may see more cautious trading. At the same time, ETH sees a trend of holding, as whales and retail still see the potential of DeFi, requiring ETH as collateral or for gas fees. 

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