Ethereum (ETH) faced increasing sell pressure last week as crypto prices tumbled. The largest altcoin, on the verge of an uphill climb ahead of 2025, has plummeted beyond multiple resistance levels. ETH trades at $3,336 at press time, a 2% drop in 24 hours and a sharp 19% decline this week.
Massive ETH Outflows
Data from crypto analytics firm Lookonchain shows whales offloading assets to recoup slight gains. This has ushered in declining sentiments after the Federal Reserve’s Jerome Powell stressed caution for future cuts. Although the central bank slashed policy rates by 25 basis points and hinted at two cuts in 2025, investors moved slowly after the decision.
Caution on the Fed’s part could mean delayed cuts, which will cause funds to flow out of risky assets. Ethereum and altcoins have traded in this downward direction. An ETH whale sold huge assets on decentralized finance (DeFi) protocols to repay loans. The trader deposited 22,746 ETH worth approximately $77.7 million on Binance.
On-chain data shows the amount used to pay Spark and Aave’s debts. In the last 48 hours, the wallet moved 31,968 ETH, about $122 million, to Binance. The exchange continues to record crypto exits as the wider market tumbles. The movement to centralized exchanges from other custodians indicates a scale sparking bearish sentiments.
Hours after the transaction, another whale moved 49,910 ETH worth $170 million to Binance and withdrew $137 million of stablecoins from the exchange. Offloads by the Ethereum Foundation have also sparked low sentiments this year. The community criticized these withdrawals, calling for accountability before the team explained.
“Since the #EthereumFoundation sold 100 $ETH on Dec 17, the price of $ETH has dropped by ~17%, marking another successful top sale. Over the past year, #EthereumFoundation has sold 4,466 $ETH($12.6M) across 32 trades, with 15 of them executed at the top(marked in red in the table),” Lookonchain wrote.
What’s Next For ETH Price
Ethereum price has faced significant pressure alongside the wider market. Total liquidations have topped $2 billion, with the market cap declining 8% in 24 hours. As volumes plunge, several experts cast doubt on the anticipated ETH rally.
However, ETH bulls continue to pick up assets, pushing for a recovery and a price above $5K in the altcoin rally. This is fueled by recent outflows from Bitcoin after its price slumped retracted below $100K. Analysts opine that the first step in an upward movement for ETH revolves around reclaiming the $3,500 resistance.