Ethereum Stays Bullish Despite $23.5 Million Dump

Hong Kong’s Metalpha has recently sold more than 33,589 ETH valued at $77.55 million to Binance within a span of four days. Despite the current market recovery, Ethereum (ETH) seems to be heading towards a significant price drop, with both investors and institutions displaying bearish sentiments by offloading ETH on exchanges.

Institutional selling has been prominent, with on-chain analytic firm Lookonchain reporting that Metalpha, a major Hong Kong asset management firm, sold 10,000 Ether worth $23.45 million to Binance on September 10. Over the past four days, the company has disposed of a total of 33,589 ETH, amounting to $77.55 million.

Although Metalpha has executed substantial sales, it still holds a sizeable 51,300 ETH valued at $120 million as of now. The trend of Ethereum whales refraining from accumulating ETH since early July has been observed, with a shift towards selling or redistributing their ETH holdings, indicating a waning interest among investors and whales in recent weeks.

The possibility of a massive sell-off looms if whales and institutions persist in significant ETH sell-offs. However, there are positive indicators for Ethereum, as it has shown resilience at the crucial support level of $2,150 and a bullish divergence on its Relative Strength Index (RSI), hinting at a potential upward rally. Historically, when ETH hits this support level, it tends to surge by over 23%, raising expectations of a climb to $2,700, contingent upon ETH maintaining above $2,150.

On-chain data further supports an optimistic outlook, with Coinglass’s ETH Long/Short Ratio Chart at +1.424, the highest level in the past week, reflecting bullish sentiment among traders. Moreover, the increase in ETH’s Futures Open Interest by 2.5% suggests a growing inclination towards long positions, with 58.75% of top ETH traders holding long positions, indicating a dominance of bulls in the market.

As of the latest update, ETH is trading around $2,350, having surged by over 2.35% in the last 24 hours, accompanied by a 14% rise in trading volume, indicating heightened trader participation amid the ongoing market recovery. The current scenario underscores the intricate dynamics influencing Ethereum’s price movements and market sentiment, emphasizing the importance of monitoring key levels and on-chain data for insights into potential price trends and market behavior.