Ethereum has encountered increased selling pressure following a significant reduction in positions by large holders, who have divested approximately 550,000 ETH, amounting to nearly $880 million, within the last week. The scale of the distribution indicated a rising caution among significant market participants, which in turn augmented the available supply entering the market. Consequently, Ethereum experienced a decline, moving closer to the $1,560 support level indicated on the daily chart. The decline also aligned with a weakening market structure following Ethereum’s inability to reclaim higher resistance levels earlier this month. Rather than drawing in robust follow-through buying, every effort at recovery faced persistent selling pressure. Spot Taker CVD exhibited a contrasting scenario compared to the whale activity. At this time, Taker Buy Dominant indicated that market buyers had regained control of executed spot orders despite the sizeable distribution from large holders. This shift indicated that retail participants and smaller investors took on a portion of the increased supply entering the market. Buying interest has shown resilience near support rather than dissipating following the decline.
Even so, the renewed demand had not yet translated into a decisive breakout, as substantial whale selling persisted throughout the week. Buyers thus encountered the challenging hurdle of addressing ongoing overhead supply prior to Ethereum’s potential for a more robust recovery. Ethereum revisited the $1,560 demand zone following a pronounced decline from the $2,000 resistance region. The daily chart indicated that buyers consistently reacted whenever the price neared this zone, averting an additional immediate breakdown. That repeated defence indicated that the level continued to draw demand, even in the face of broader market weakness. At this juncture, the RSI lingered beneath the neutral 50 threshold, registering approximately 33, indicating that bullish momentum had yet to regain its full vigour. Despite that, the indicator remained above its recent low, indicating that selling pressure had diminished in comparison to the earlier collapse.
Price continued to exhibit higher rebounds from support, yet it remained below the significant resistance levels at $1,800 and $2,000.If buyers persist in their defence of the current zone, Ethereum may make another attempt at recovery toward those resistance levels.However, a loss of $1,560 would likely subject the market to another downward movement before more robust demand materialises. The Binance ETH/USDT Liquidation Heatmap indicated that the most significant concentration of liquidity is located in the $1,590-$1,600 range. Those dense liquidation clusters represented the nearest impediment above the prevailing market price and underscored where volatility might escalate should Ethereum persist in its recovery. Price had previously tested this area multiple times without achieving a lasting breakout.That behaviour suggested that sellers continued to be engaged around the liquidity pocket, even as buyers upheld lower levels.
Clearing the $1,590-$1,600 cluster could trigger additional short liquidations and encourage price to challenge the next resistance near $1,800.Otherwise, repeated rejection inside that zone would strengthen the case for another retest of the level at which buyers would once again need to absorb renewed selling pressure. Ethereum demonstrated indications of stabilisation as buyers successfully defended the $1,560 support level, even in the face of significant selling pressure from whales. Spot demand also strengthened, providing a positive indication beneath the surface. However, the market would likely need to clear the $1,590-$1,600 liquidity barrier before any broader recovery could develop. Failing to breach that zone may confine Ethereum close to support levels, heightening the likelihood of a subsequent downward test.