Ethereum Faces Whale Dumps and Technical Exhaustion as Market Bets on Yearly High

06.08.2025 14:32

Ethereum (ETH) is showing signs of technical exhaustion following a 50% rally from $2,800 to nearly $4,000, with critical support levels now under threat. According to technical analysis, ETH faces immediate resistance at $3,700 after forming lower highs on the 4-hour chart. The asset must hold above the $3,500 demand zone to maintain neutral-to-bullish bias, with a break potentially triggering a correction toward $3,300 or even the 100-day moving average at $2,800.

Simultaneously, significant selling pressure has emerged as whales and institutions offload holdings. CryptoQuant data reveals a $418.8 million net taker volume deficit—the second-largest daily sell imbalance in history—with sellers dumping 115,400 ETH more than buyers absorbed. BlackRock deposited $372 million worth of ETH to Coinbase Prime, while Fidelity liquidated 14,978 ETH ($53.6 million), amplifying downward pressure.

Despite these bearish signals, market optimism persists. Polymarket traders assign a 54% probability to ETH setting a new all-time high in 2024—up 12% in 24 hours. This sentiment is buoyed by institutional adoption, with 17 public companies holding $6 billion in ETH. Technically, ETH clings to the 20-day EMA support at $3,546, though RSI momentum cools below 60. A breakdown could test the 50-day EMA at $3,210, while reclaiming $3,700 may reignite bullish momentum toward $4,100.