Ethereum has encountered significant pressure since it fell below the $3k support level one week ago. In a continued downward trend, Ethereum reached a low before finding some stability around. As of this moment, the price is $2,266, reflecting a decline of 1.51% on the daily chart, continuing its bearish trend that has persisted for the past month. In the midst of the market’s increased chaos, the fragile state of ETH has resulted in considerable surrender among holders, especially those with substantial holdings in Ethereum. Amid a prolonged market decline, Trend Research and Garrett Jin have continued to sell their ETH assets to pay off loans and avoid the dangers of liquidation. It is reported that these two entities have deposited a total of 316,185 ETH, valued at $738 million, on Binance for trading. Jin sold 82.37 million in ETH in the last 24 hours, while Trend Research sold 76.4 million in ETH. This selling indicates a calculated departure from the market driven by risk management, aimed at reducing debt and improving overall market stability, thereby decreasing the likelihood of liquidation. At the same time, the Bitcoin OG (10/11) has been consistently selling off ETH. Onchain Lens has disclosed that a significant holder has transferred 15,000 ETH, valued at $33.35 million, into Binance to facilitate a sale and settle a loan. Generally, enforced reduction of leverage leads to increased selling pressure, thereby amplifying the risk of decline.
As large investors reduce their positions, the selling pressure on ETH has noticeably risen. As a result, the availability of Ethereum on exchanges experienced a notable rise, as indicated by the Exchange Supply Ratio. Data reveals that ESR reached a weekly high of 0.138, indicating a notable shift from the prior trend as of this time. When ESR rises, it suggests that most market participants have increased their supply-side activities. This kind of market behavior reduces scarcity, which in turn contributes to a further decline in the market. Furthermore, Exchange Inflow surged to a two-month high of 2.3 million on February 3rd before dropping to 210k. Such massive inflows confirmed the earlier observation of increased sell-side pressure, which often indicates a potential drop in prices, as observed recently. Ethereum is facing considerable selling pressure from all market players, mainly due to large holders making compelled exits. The current circumstances have led to a notable decline in the asset’s standing.
The altcoin has fallen beneath its Parabolic SAR and both medium- and long-term Fibonacci Bollinger Bands, indicating considerable downward momentum at this time. When ETH holdings drop beneath these two thresholds, it frequently suggests that the current trend is expected to continue. Therefore, should selling pressure continue, ETH might fall beneath the $2,000 mark, with the lower boundary of the FBB at $1,796 acting as a support level. Despite the recent price decline, Ethereum Treasury Bitmine has managed to hold its ground and continue accumulating at lower prices. It is reported that Bitmine has acquired 20,000 units of a cryptocurrency, which is valued at around $46 million. Through these acquisitions, Bitmine has positioned itself as the primary force in the market.
Therefore, if Bitimine continues to uphold and expand its positions despite rising losses, it will act as a stabilizing influence, preventing further declines. To reverse this declining trend, ETH bulls must reclaim the Parabolic SAR at $2656, setting the stage for a possible rise towards $3k. Ethereum maintained its decline, hovering around the $2.2k level. ETH faced considerable selling pressure as large investors took steps to reduce their leverage, unloading $771 million in ETH to pay off loans and lower the risk of liquidation.