Ethereum lost the critical $3,000 level on Sunday, moving towards $2,800, triggering a recent wave of fear in the market. The decline highlights a deepening corrective phase that has pushed short-term investors into enormous unrealized losses, prompting many to reassess their risk exposure.
Adding to the uncertainty, fresh on the chain data revealed renewed distribution from major holders. According to Arkham data provided by Lookonchainwell-known whale 0xdECF deposited another 5,000 ETH – approximately $15.05 million – on Binance.
The move extends a pattern of constant selling pressure from enormous portfolios often seen during heightened market stress. While one whale doesn’t define a broader trend, these deposits tend to reinforce bearish sentiment among traders, who monitor exchange inflows as an indicator of potential sell-side liquidity.
Whale distribution deepens amid broader market unrest
As of October 28, the same whale wallet accelerated its selling activity, releasing 25,603 ETH – approximately $85.44 million – on Binance and Galaxy Digital. Despite this aggressive distribution, there is still 10,000 ETH in the wallet worth approximately $30.34 million, raising the possibility of further selling pressure should market conditions weaken further. These types of large-scale moves often signal a shift in sentiment among sophisticated instrument holders, who tend to anticipate volatility earlier than the broader market.
This sales frenzy comes at a time when self-confidence is already delicate. The recent Tether FUD rally, fueled by speculation about reserve transparency and potential regulatory scrutiny, has further strained liquidity conditions.
Meanwhile, headlines about China’s alleged Bitcoin trading ban have resurfaced on social media, increasing fear among retail traders and short-term investors alike. While neither narrative reflects recent fundamental risks, emotional markets often react sharply to sensational news during recovery phases.
Together, these factors create a background in which whale distribution gains enormous influence. If the remaining 10,000 ETH ends up on exchanges, it could deepen short-term downward pressure. Conversely, a break in selling may suggest that the whale views current levels as near-surrender territory, offering a potential minimum level of stability.
Support for Ethereum price tests as the downtrend remains intact
Ethereum’s 4-hour chart shows that the market is still trying to regain momentum after losing $3,000. The broader structure remains decidedly bearish, with prices below the 50 SMA, 100 SMA and 200 SMA – a clear indication that sellers continue to control the trend. Any attempt to break above the moving averages was rejected, reinforcing a downtrend that began in overdue October and continued into November.
The recent rebound from the $2,750-$2,800 support zone shows that buyers are defending this level, but the reaction is unconvincing. Volume remains subdued and the last attempt to reclaim $3,000 quickly failed, creating another lower high. This signals hesitation and suggests that the bulls are not yet forceful enough to change the market structure.
The compression seen towards the end of the chart has formed a diminutive symmetrical triangle, but the subsequent breakdown confirms that sellers still dominate in the low term. As long as ETH remains below the 200 EMA – currently near $3,350 – the macro trend will favor continued declines.
If $2,800 breaks clearly, the next liquidity areas will be around $2,600 and $2,450, levels that could attract more buyer interest. For now, Ethereum needs to recover $3,000 on steady volume to neutralize the bearish pressure.
Featured image from ChatGPT, chart from TradingView.com
