A foreign market analysis suggests that Ethereum is facing increased selling pressure amid rising risk aversion. Lookonchain, an on-chain tracking account, revealed that an address that had been dormant for three years recently sold 10,000 ETH for approximately $17.72 million USDC, averaging about $1,772 per ETH.
The sale of a whale has drawn attention.
The article argues that this transaction has attracted attention not only because of its large size, but also because the seller had been inactive for a long time. A sudden reactivation of a long-dormant address is often seen by the market as a signal of changing sentiment, especially when prices have already weakened.
According to the article, Ethereum has fallen more than 33% from its previous high of around $2,400, and the market is currently watching whether the support around $1,500 is strong. Based on this, the author concludes that whales converting ETH to USDC is more likely a way to preserve liquidity during a period of price weakness, rather than continuing to bear the risk of volatility.
Stablecoins and staking both slowed down.
The article also cited data from DeFiLlama, stating that the stablecoin market saw a cumulative outflow of nearly $3.5 billion this week, a decrease of over 1.07% in overall size. USDC's market capitalization has also seen net outflows for eight consecutive weeks, with a cumulative outflow exceeding $3 billion.
The author believes that these changes in funds reflect that some large holders are reducing their risk exposure. Meanwhile, while Ethereum staking demand remains high, the marginal growth rate has shown signs of slowing. Data shows that approximately 3.103 million ETH are currently queuing to enter the network, but nearly 100,000 ETH have left the staking queue this month.
Foreign media reports that short selling is dominant.
The article also mentions that Ethereum's daily RSI has fallen to an extreme low in about seven and a half years, even lower than some levels during the pandemic and the 2022 FTX incident. However, the author points out that the oversold condition has not brought about significant bargain hunting, and spot demand remains insufficient.
Against this backdrop, short positions recorded profits exceeding $5.8 million this week. The article argues that this indicates the current market is more defensive, and if leverage continues to rise, positions become more crowded, and spot buying fails to provide support at key levels, the risk of Ethereum falling below $1,500 will increase.
Overall, this commentary places the selling of dormant whales, stablecoin outflows, slowing staking, and short-selling profits under the same thread, suggesting that Ethereum's short-term structure remains fragile, and the market will continue to observe whether there is a clearer buying back near the support level.
