Ethereum ETFs record another week of strong outflows as whales shed their holdings

• Grayscale’s $111 million ETHE exodus triggered net flows for ETH ETFs last week.
• Ethereum whales have been distributing their holdings since July.
• Ethereum could see a rejection around the $2,400 resistance level.

Ethereum (ETH) rose 2.5% on Monday as the top altcoin tries to recover from selling pressure from exchange-traded fund (ETF) investors and top whales.

Daily Market Reasons: Ethereum ETFs Exits, Whale Distribution

Ethereum ETFs saw a net outflow of $98.1 million last week following ETH’s price struggles. US spot ETH ETFs – led by Grayscale ETHE’s $111 million exodus – dominated negative flows after posting outflows for all of its trading days for the week.

The exits align with a similar attitude among Ethereum whales with >10,000 ETH holdings. Glassnode data showed that this cohort sold or redistributed their holdings since July. Recent whale activity confirms the data, as Hong Kong asset manager Metalpha deposited 10,000 ETH worth $23 million to Binance a few hours ago. The asset manager transferred 23.58K ETH to Binance for an average price of $54.1 million in the last three days.

Additionally, a potential Ethereum Foundation wallet sold 450 ETH for 1.029 million DAI in the last 24 hours, per SpotOnChain. In particular, the Foundation often sold at premiums, given the decline that followed several previous sales.

Ethereum co-founder Vitalik Buterin may have also sold ETH:

On a positive note, Ethereum posted a 4-month high on the network after adding 126,210 new wallets on Sunday.

ETH Technical Analysis: Ethereum could be rejected around $2,400

Ethereum is trading around $2,330 on Monday, up 2.5% on the day. Over the past 24 hours, ETH has seen more than $30 million in liquidations, with long and short liquidations accounting for $8.83 million and $21.51 million, respectively.

Ethereum resumed the week trying to recover from Friday’s price drop. The decline saw ETH lose the $2,400 support level and fall into another key rectangle. As a result, the $2,400 price level flipped over to become the resistance of this rectangle, with its support level around $2,100.

ETH/USDT 4 Hour Chart

On the road to recovery, ETH may see a rejection around the $2,400 resistance supported by the 50-day simple moving average (SMA).

On the downside, a breach of the $2,100 support could send ETH to the $1,550 price level.

On the 4-hour chart, the Relative Strength Index (RSI) indicates an increase in upward momentum after crossing the median line. The Stochastic Oscillator has crossed into the oversold region, which means a slight correction may be imminent.

In the short term, ETH could rise to $2,365 to liquidate $47.09M worth of positions.