🌎 Ethereum Faces Sell Pressure Amid Whale Dump

Ethereum Under Pressure as Whales Dump ETH and Spot ETFs Report Large Net Outflows

Ethereum is facing increasing sell pressure due to whales dumping ETH and spot Ethereum ETFs reporting large net outflows. According to recent data, U.S. Ethereum spot ETFs saw $94.3 million in net outflows on February 26. The outflows were led by BlackRock with $69.7 million, followed by Fidelity with $18.3 million and Grayscale with $3 million.

Over the past week, total net outflows have reached $222 million. This has led to a 5% drop in ETH’s value over the last 24 hours, with the cryptocurrency trading at $2,340 at press time.

24-Hour Liquidations and Weaker DeFi Activity

According to CoinGlass, 24-hour liquidations have totaled $127.93 million. Weaker DeFi activity and liquidity are also evident in Ethereum’s total value locked, which has fallen to $51.5 billion, the lowest level since November 2024.

Rising whale activity is adding to the pressure. Blockchain analytics firm Lookonchain identified two significant transactions on February 27. These included a $19.63 million sale of 8,074 ETH and a $23.44 million deposit of 10,000 ETH to Binance.

Large holders are likely exiting their positions, contributing to the sell-off.

Market Turmoil and Negative Sentiment

The sell-off coincides with greater market turmoil as former US President Donald Trump reiterated plans for a 25% tariff on imports from the European Union. This has caused volatility in the cryptocurrency markets.

The latest Bybit hack, which amounted to $1.4 billion, has added to the negative sentiment. Despite the loss, some analysts expected that Bybit’s large-scale acquisition of ETH to offset the losses would boost the price of Ethereum. However, selling pressure has continued to outweigh any bullish expectations.

Potential Support for Ethereum

Despite the current bearish outlook, Ethereum may find support from two significant developments. If the Securities and Exchange Commission approves staking for Ethereum ETFs, it may strengthen Ethereum’s position as a long-term investment asset.

In addition, the much-anticipated Pectra upgrade is set to go live on April 8. The anticipated improvements in network scalability and efficiency could draw in new developers and investors, acting as a potential catalyst for Ethereum’s growth.