The post Ethereum Sell-off Ahead? Institutions Dump $35M Worth of ETH appeared first on Coinpedia Fintech News
The overall cryptocurrency market is turning red and has experienced a 1.75% downside momentum. Amid this market downturn, institutions are looking to sell their crypto holdings.
Institutions Dumped $35M Worth Ether
On August 26, 2024, an on-chain analytic firm lookonchain made a post on X (Previously Twitter) that two institutions dumped over 12,882 Ethereum (ETH) worth $35.3 million to centralized exchanges including Binance and Kraken.
According to lookonchain, Amber Group and Cumberland are the institutions that dumped Ethereum. Data shows that Amber Group moved 6,443 ETH worth $17.62 million to Binance and Kraken, while Cumberland deposited 6,439 ETH worth $17.99 million to Binance.
These notable ETH dumps to the CEXs indicate potential upcoming selling pressure.
Ethereum Price Prediction
According to expert technical analysis, ETH looks bearish as it is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. Additionally, it is forming a bearish rising wedge price action pattern and there is a high chance it could soon give a breakout of this pattern.
If the sentiment remains bearish and ETH breaks out and closes a daily candle below the $2,645 level there is a high possibility it could decline by 12% to the $2,310 level.
Declining Open Interest
Data from the on-chain firm CoinGlass suggests institutions‘ and investors’ interests are gradually reducing. ETH’s open interest has dropped by 1% in the past hour and by 2.3% in the last four hours. However, its open interest has remained unchanged over the last 24 hours.
In addition to institutions’ sentiment, traders also look bearish on ETH. Currently, short positions significantly outnumber bullish long positions
Key Liquidation Levels
Based on the ETH exchange liquidation map, the major liquidation levels are near the $2,680 level on the lower side and the $2,775 level on the upper side. Traders are over-leveraged at these levels, according to CoinGlass data.
If the sentiment remains bearish and the price drops to the $2,680 level, nearly $119 million worth of long positions will be liquidated. Conversely, if the sentiment changes and the price soars to the $2,775 level, nearly $289 million worth of short positions will be liquidated.
These data clearly indicate that bears are more active, and these substantial positions may create additional selling pressure.
