Ethereum’s Latest Drama: Sell Pressure, Falling Activity, and Whale Shenanigans! 😂

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Ah, Ethereum! The noble steed of the digital realm finds itself rather unceremoniously stumbling below the illustrious mark of $3,000. One cannot help but muse upon the rather disheartening spectacle unfolding-heavy liquidations, a stark decline in network activity, and a veritable exodus of institutional funds-all of which have conspired to cast a pall over what many hoped would be a vibrant marketplace.

And yet, while the price clings desperately above certain key support levels-like a cat on a tree limb-it becomes quite clear that a host of indicators shout in unison, warning us of the persistent specter of selling pressure. The market, dear reader, remains ensconced in a state of cautious restraint, akin to a timid lover contemplating a confession of affection.

In the past week, our beleaguered Ethereum has plunged approximately 12%, trailing behind its more gallant counterparts amidst a broader market correction. This unfortunate descent brought ETH perilously close to the $2,850-$2,900 realm, resulting in a liquidation event that amassed over $200 million-a staggering sum that might make even the most stoic investor weep quietly into their morning coffee.

Network Activity and Ethereum ETF Flows Signal Waning Participation

Yet, beyond these mere figures lies a tale even more intriguing, for Ethereum’s on-chain metrics reveal a cooling participation, like a waning romance. Weekly active addresses plummeted from around 440,000 earlier this quarter to a meager 324,000 in December, marking a nadir not seen since the joyful days of May.

Transaction counts, too, have succumbed to the malaise, dropping to mid-year lows that indicate dwindling engagement from both the eager retail investors and the esteemed institutional players alike.

Moreover, the U.S. spot Ethereum ETFs seem to be suffering from a bout of persistent outflows. Data from SoSoValue illustrates a grim exit of over $224 million from ETH ETFs over several consecutive sessions, with BlackRock’s ETHA fund leading the charge-a veritable lifeboat as the ship goes down!

Since the middle of December, the net assets across these U.S. spot ETH ETFs have declined by a staggering $3 billion, illuminating a trend wherein institutions appear to be shedding their exposure rather than adding to their stables. The Coinbase Premium Index turning negative further cements the notion that the U.S. market has once again been gripped by selling pressures.

Whale Selling and Technical Structure Keep Risks Skewed Lower

Ah, but the plot thickens! Large holders, those whales of the sea, have thrust additional pressure upon our poor Ethereum. On-chain data suggests that over 28,500 ETH were sold by a select few wallets in rapid succession, with transactions exceeding a whopping $80 million in total value-one can only imagine the frenzy of their jubilant laughter!

Despite this flurry of distribution, ETH has thus far evaded a catastrophic breakdown, as buyers valiantly defend levels near $2,880, much like a knight fending off a dragon.

From a technical perspective, Ethereum finds itself mired in a medium-term downtrend. Prices linger stubbornly beneath key moving averages, while momentum indicators such as the RSI languish below neutral levels, like a forlorn poet trapped in melancholy.

Resistance appears to congregate between $3,050 and $3,120, and should the valiant ETH fail to reclaim this territory, it may soon face another harrowing trial at the $2,800 level. Should that bastion fall, analysts ominously pinpoint the $2,400-$2,600 range as the next area of interest-a veritable abyss for our beleaguered Ethereum.

Cover image from ChatGPT, ETHUSD chart from Tradingview

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2025-12-17 22:44