Ethereum [ETH] has been attempting a recovery back above $2,000, but it has been facing a setback each time. The altcoin has reclaimed $1,900 after the dip to the $1,850 level as bulls gain momentum.
However, dormant whales seem to be profit-taking or repositioning, while long liquidations have spiked too. Could this potential selling pressure be capping ETH’s price recovery efforts?
Dormant Ethereum ICO hints at selling, liquidations surge
As Ethereum struggles to reclaim $2,000, an Ethereum ICO participant is hinting at selling, but it is yet to be confirmed.
This Ethereum genesis wallet moved the entire 2,680 ETH, worth $5.05 million, to new wallets after 11 years of dormancy. They were moved in two batches of 1,876 ETH and 804 ETH with test transactions of 0.001 ETH.
The whale invested $831 in the 2015 ICO, equivalent to a return of 6,068x as per the current valuation of ETH.
On the other hand, the whale could also be moving for security purposes, bearing in mind the spike in crypto hacks. Some have even affected cold wallets. If this scenario is the case, the selling pressure would be mitigated.
However, a spike in long liquidations reinforces suspicion of further decline or consolidation.
For instance, Machi lost $2.44 million from two positions on Hyperliquid [HYPE]. He still holds $4.36 million in ETH with a floating loss of $68K, only 1.1% away from liquidation. This suggests that more of his long positions could be wiped out.
As such, Ethereum would be subjected to further decline. But Ethereum remains under a tight sideways market.
Is selling pressure capping ETH price recovery?
The altcoin formed a floor in June, where it created a double bottom and entered an uptrend in July. However, Ethereum has been lagging since late July, where it is trading between $1,830 and $1,950.
The Accumulation/Distribution is rising to 16.84 million ETH, indicating buying activity.
Despite that, the dormant whale waking, high liquidations, and declining new funded addresses are capping the recovery. New funded addresses dropped from 257.33K in early July to 160.74K.
Notably, the bulls had succeeded in defending $1,850 but were still in an accumulation pattern.
A breakout from this pattern would expose the $2,000 zone, which is a resistance now. In case of a breakdown, the altcoin may trade back to $1,550, where it bottomed out.
Final Summary
- Ethereum ICO moves $5 million ETH after 11 dormant years, as long liquidations spike, hinting at selling pressure.
- Ethereum trades inside a sideways market with Accumulation/Distribution confirming buying activity, although selling pressure exists.
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