Ethereum (ETH) Price: Whales Dump Massive Holdings as Rally Loses Steam at $2,700

TLDR

Table of Contents

Ethereum dropped 3.05% to $2,476 after facing rejection at $2,700 level
Whales sold over 188,000 ETH in one day while spot market shows selling dominance
Glassnode data reveals cluster of investor cost basis around $2,800 could trigger break-even selling
Taker Buy-Sell Ratio declined sharply indicating aggressive sellers taking control
Key support at $2,200 becomes critical if selling pressure continues

Ethereum has experienced a sharp pullback after reaching $2,700 two days ago. The cryptocurrency now trades at $2,476, marking a 3.05% decline over the past 24 hours.

The rejection at $2,700 came after ETH rallied more than 40% in the past month. The token had recovered from lows near $1,800 and reclaimed the $2,500 mark before hitting resistance.

Glassnode analysis reveals a cluster of investor cost basis levels around $2,800. Many holders who bought at that level have been underwater for months. These investors may now see an opportunity to exit at break-even as ETH approaches this zone.

There is a notable cluster of investor cost basis levels around $2,800 for $ETH. As price approaches this zone, sell-side pressure may increase as many previously underwater holders may look to de-risk near breakeven. pic.twitter.com/ukn2s7cOJo
— glassnode (@glassnode) May 24, 2025

The derivatives market shows changing sentiment through the Taker Buy-Sell Ratio. This metric tracks whether aggressive market participants lean toward buying or selling. The 14-day moving average for this ratio has dropped sharply.

CryptoQuant data confirms that aggressive sell orders are overpowering buy orders. This shift indicates that sellers are taking control of the derivatives market.

Whale Activity Shows Heavy Selling

Large holder activity reveals the extent of selling pressure. IntoTheBlock’s Large Holder Netflow metric turned negative, falling to -12,700 ETH. This means whales sold over 188,600 ETH in a single day.

The negative netflow suggests institutional and large holders are currently in selling mode. This selling pressure spans across both small and large holders equally.

Spot market data reinforces the bearish sentiment. The Spot Buy vs Sell Volume recorded a negative delta of 22,530 over the past day. Market participants sold 113,100 ETH while only buying 90,000 ETH.

Technical Indicators Show Mixed Signals

Despite the recent decline, ETH maintains its position above key moving averages. The token trades above both 50-day and 100-day moving averages, suggesting the longer-term trend remains healthy.

However, technical indicators show signs of cooling momentum. The Bollinger Bands have begun to tighten after expanding earlier this month. This indicates that volatility may be easing.

Ethereum currently trades near the midline of the Bollinger Band. This positioning suggests the market remains undecided about direction.

The Relative Strength Index holds at approximately 63.9 in bullish territory. However, it no longer shows overbought conditions. The Moving Average Convergence Divergence has flattened and displayed a bearish crossover.

Two scenarios could play out from current levels. If the $2,800 resistance breaks convincingly, ETH could move toward $3,000 and beyond. The SEC decision on Ethereum ETF staking is due by June 1st, which could provide institutional demand.

Alternatively, if selling pressure builds around $2,800, Ethereum might correct to the $2,200 support level. Break-even sellers and aggressive futures traders could drive this correction.

The $2,200 level becomes critical support if the current selling continues. Holding above this level is essential to prevent a drop below $2,000.

Market participants are watching whether this sell-off represents short-term profit-taking or a more sustained correction. The behavior of large holders and futures traders will likely determine ETH’s next direction.

Current on-chain data shows selling pressure intensifying across multiple metrics. Both whale activity and spot market flows confirm that sellers currently dominate trading activity.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: