Ethereum bear faction has sold 2.5 billion USD: Will this affect the price of ETH?

Ethereum (ETH) has witnessed some sideways movements this week, helping this altcoin escape a bearish trend lasting nearly three weeks. Although facing bearish signals, including whale sell-offs, ETH has maintained its stability.

This is raising hopes for an upcoming breakout, which could set the stage for strong growth.

Ethereum whales sell

According to data from Santiment, whale addresses are showing a pessimistic sentiment at the moment as some large holders have started to liquidate their positions.

In the past 48 hours, addresses holding between 1 million and 10 million ETH have sold over 1.06 million ETH, worth approximately 2.57 billion USD.

Whale selling often puts bearish pressure on prices. However, in this case, ETH prices continue to hold, indicating the market's resilience.

The holding amount of Ethereum whales | Source: SantimentLooking at the macro momentum, the IOMAP chart (In/Out of the Money Around Price) shows a significant demand zone for ETH. This zone holds 65.83 million ETH, worth over 159 billion USD.

These holdings were purchased in the range from $2,349 to $2,421, creating a strong support zone.

A large number of investors who bought ETH within this price range are unlikely to sell at breakeven or at a loss, making it difficult for the price to drop below this important support level.

The support zone acts as a solid buffer for the price of Ethereum, protecting the market from any sharp declines. The backing from these investors can create a foundation for the price of ETH to remain stable despite recent selling pressure.

Therefore, the price is less likely to fall sharply below $2,344.

Ethereum IOMAP | Source: Santiment## ETH is consolidating

ETH is currently trading around $2,440, just below the important resistance level of $2,476.

Although there has been no significant increase, the sideways movement has allowed ETH to escape the three-week downtrend. This consolidation phase is setting the stage for potential growth.

The factors above indicate that Ethereum may continue to consolidate in the range of $2,344 to $2,476 or may potentially break through the resistance level.

If this altcoin successfully flips the $2.476 level to support, the likelihood of rising to $2.606 is very high. This will mark a strong breakout and may attract more buyers into the market.

ETH Price Analysis | Source: TradingViewOn the other hand, if the broader market conditions turn bearish, similar to the sentiment last week, the price of ETH could slide below $2,344 and return to $2,205.

A fall below this support level will invalidate the current bullish thesis, potentially signaling a strong subsequent decline.

Vincent