Ethereum Whales In Panic Selling; ETH ‘Buy The Dip’ Narrative Fails?

Ethereum whales have resolved to panic selling as per the on-chain data after ETH price failed to hold crucial support levels, dropping another 7% today and slipping under $2,300. As market sentiment weakens, whales have offloaded millions of dollars worth of ETH during the past week.

Ethereum Whales In Panic Selling Mode

Ethereum whales have offloaded ETH in large numbers over the last few days. In a notable transaction, wallet 0xc725…839d sold 8,074 ETH worth approximately $19.63 million at an average price of $2,431 just 12 hours ago. Another wallet, 0x07Fe…A26D, has deposited 10,000 ETH valued at $23.44 million to Binance over the last two days, signaling potential preparation for further sales, as reported by LookonChain.

Additionally, crypto analyst Ali Martinez has also highlighted the scale of sell-off while noting that whales have collectively sold over 440,000 ETH in the past week. This trend suggests a rising wave of panic selling among large holders as market uncertainty persists.

The recent turbulence in Ether (ETH) is also the outcome of a Bybit exchange hack over the past weekend. However, the exchange was quick enough to acquire 100% of Ethereum lost during the hack, within just 48-72 hours of the incident.

On the other hand, outflows from spot Ether ETFs have also been on the rise recently. On Wednesday, the total outflows from Ether ETFs stood at $94.3 million with BlackRock’s ETHA contributing the most at $68.4 million as per data from Farside Investors.

Is ETH Still Buy On Dips?

Market analysts have mixed opinions on Ethereum price action recently. Some market analysts believe that now is not the time to sell ETH after more than 14% drop on the weekly chart and 26% on the monthly chart.

Popular crypto analyst IncomeSharks reported that ETH is currently at the bottom of its range and within the accumulation zone. According to the analyst, this is a good time to add ETH before it resumes its journey to the upper end of the range at $4,000.

On the other hand, crypto analyst Justin Bennett has issued a bearish outlook for Ethereum, highlighting the lack of bullish momentum at current support levels.

“Nearly a month later, and bulls haven’t been able to do anything at support,” Bennett remarked on Twitter, suggesting a potential drop for ETH to $1,000 if current trends persist.