In turbulent market conditions, assets characterized by deep liquidity frequently exhibit signs of stress prior to any confirmation of price direction. Ethereum exhibited this trend as significant holders actively decreased their positions. At press time, ETH was trading around $2,957, showing signs of consolidation following a significant sell-off. Despite the extensive distribution, sellers were unable to initiate an immediate breakdown. This response indicated that the market had taken in the supply, though downside risk continued to be high. Data has uncovered a notable surge in concentrated selling activity among several large holders in a brief timeframe.
A wallet associated with Konstantin Lomashuk, executed a sale of 14,585 ETH, totaling $42.7 million, in a mere hour. Additionally, two other whales have offloaded a combined total of 14,000 ETH, which is valued at $40.8 million. One address executed a sale of 10,000 ETH through decentralized exchanges, while another transferred 4,000 ETH using major centralized platforms. In total, over 28,500 ETH entered the market, amplifying short-term sell-side pressure.
Despite aggressive distribution, Ethereum’s price action indicated a methodical absorption rather than chaotic selling. ETH maintained its position above ascending support while oscillating between the 50% and 61% Fibonacci retracement levels, a range that typically attracts price movements. Buyers consistently stepped in to protect the lower line around $2,882, curbing any potential downside momentum. However, momentum remained fragile, with the RSI sitting at 36.76 at press time, indicating a decline in demand without any signs of capitulation. Liquidity has been concentrated above $3,000 on liquidation heatmaps, creating a setup that could serve as a price magnet should selling pressure diminish.
However, not maintaining a position above the 61% Fibonacci level would significantly undermine the setup. This action might reveal the $2,607 area, where previous demand has been noted. Is Ethereum experiencing absorption of distribution or approaching invalidation? The market seemed to be split between short-term distribution and longer-term positioning. Whale selling exerted pressure, yet the price managed to evade a significant breakdown throughout the observed period. Overhead liquidity frequently serves as a magnet during consolidation phases. To shift sentiment decisively, reclaiming the $3,462–$3,600 resistance zone is essential. Until then, ETH was susceptible to fluctuations that could lead to extensions in either direction.