Key Insights:
- Whales sold 4,920 ETH, intensifying downward pressure on the Ethereum network.
- Ethereum nears $3,200 support as selling activity strengthens momentum.
- Analysts warn of further downside if $3,200 fails to hold firm.
Ethereum price has consolidated and dropped under $3,400, primarily attributed to substantial selling pressure. On-chain data shows that three wallets took out and sold 4,920 ETH from the Tornado Cash privacy mixer.
Sellers offloaded tokens worth approximately $16.25 million at $3,302 each. They acted in response to Ethereum’s recent bearish price action. Also, some speculate that Richard Heart may have conducted the transaction.
Richard is the founder of the HEX, PulseChain, and PulseX projects. In 2024, Heart bought 162,937 ETH. The tokens were valued at $619 million at $3,800 each at the time.
The time and the amount of the withdrawal, along with the speculation on Heart, raise questions. The sale could be connected to his portfolio.
On-chain sleuths note that it may be the activity of hackers or any other party utilizing Tornado Cash as a privacy tool. Regardless of the seller, the flow of such a large amount of ETH is undoubtedly affecting the market.
Ethereum Price Facing Massive Consolidation
Examining Ethereum price charts, we can see that the token has been struggling to stay above $3,400. The price has been fluctuating within the range of 3300 to 3400 over the last few days.
It has been slightly rising before descending to the lower limit of this range. The divestment of the wallets, especially in the $3,302 area, is likely contributing to the negative mood. This may indicate additional decline risks.
Ethereum price continues to test its previous support level near $3,200. Traders are closely watching this zone for signs of a potential rebound.
This region is one of the primary sources of support that has remained steady over the past few months. The price is headed back towards this range.
Ether has had certain resistance levels ot around $3,400. With a continued strong sell-off by whales, the coin could continue its downward trend. This could push it to levels around 3,200 in the short term.
There is Still Hope for the Ethereum Price
Social analytics by Santiment indicate that Ethereum’s social sentiment shifted in just 48 hours. Two days prior, the number of bullish-to-bearish remarks was 0.86.
This is one of the more pessimistic views toward the Ethereum price since April. Traders were generally anticipating further price declines at the time.
The ratio has now exploded to 2.7, which is quite bullish. This represents the most positive bias surrounding Ethereum since July. This means that many traders are considering the recent price correction as a possible buying spree.
The sentiment reversal is probably due to the temporary traders seeking a relief bounce. This follows the sharp decline in the Ethereum price from the $3,700 area to below $3,400.
In the past, these sudden shifts in sentiment have typically led to increased volatility. This is mainly due to optimism that leads to speculative purchases and short-selling by speculators.
Generally, the Sentiment data suggests that traders may be using the support hold as a resilience indicator. This is despite on-chain data indicating that large holders remain cautious.
Ethereum had a strong performance earlier in the year, reaching a high of over 4,000 before the current decline.
This trend, combined with existing selling pressure, suggests that further downside is likely ahead. This is particularly true if Ethereum fails to defend itself at the $3,200 support level.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
