60 Whale Wallets Simultaneously Dump 10,000 ETH... Will Ethereum Fall Below $2,000?

▲ Ethereum (ETH) Whale/Gemini Generated Image

Ethereum (ETH) attempted a temporary rebound during the week, but technical indicators and on-chain data clearly show that the market's center of gravity has already shifted downwards. Amidst a general downturn in the crypto market, Ethereum has confirmed a bearish breakdown that could deal a fatal blow to its short-term outlook.

Crypto news website Bitcoinist reported on May 22 (local time), citing analysis from PelinayPA, a certified author and data expert at on-chain data platform CryptoQuant, that Ethereum has solidified its downtrend, completely ceding market leadership to sellers. Ethereum has sunk below key support levels, and tension is high among derivatives traders who are bracing for further downward pressure.

Combining Binance's long/short liquidation data with Ethereum's price movements makes the collapse of the market structure even clearer. Ethereum has executed a downward breakout, piercing below the lower support line of a converging triangle pattern on the chart. This signifies that the previously choppy market has completely turned to a seller's advantage. Not only has it broken out of the triangle pattern's boundaries, but moving averages have also uniformly begun to turn downwards, adding significant weight to the downward momentum. As the short-term moving average continues to stay below the long-term moving average (a death cross), even a temporary technical rebound (structural rally) is very likely to be met with a sell-off and quickly reverse. PelinayPA pointed out that the downward turn of the blue moving average is a confirming signal of the overall trend structure's collapse.

Binance's liquidation data, captured alongside the technical bearish breakdown, is also sounding serious alarms. Given that a huge proportion of global virtual asset derivatives trading volume is processed on Binance, the density of liquidation clusters on this platform is a key indicator for determining future price direction. The sharp forced liquidation trend that has emerged recently, coinciding with price weakness, shows that leveraged long (upward betting) positions are being brutally wiped out, and the market is being forcibly reset downwards. During such periods, large institutional investors and whales tend to aggressively dispose of their positions. The very fact that Ethereum has shown no strong recovery since the recent liquidation bomb reflects a serious structural weakness in its price, according to analysis.

If Ethereum fails to quickly reclaim the broken triangle support structure, selling pressure could amplify uncontrollably, opening up the risk of a fall to the $1,350 support level in the worst-case scenario. To make matters worse, even the market's large whales have begun to exit the Ethereum ecosystem. Crypto analyst Ali Charts revealed that approximately 60 mega whale wallet addresses, each holding at least 10,000 ETH, have either completely emptied their holdings or consolidated them elsewhere over the past two months. This phenomenon of large entities, holding multi-million dollar positions, exiting the network in such a short period suggests that institutional investors' profit-taking and asset reallocation (portfolio adjustment) are in full swing.

Large investors are utilizing recent market liquidity for risk management (asset disposal), which reflects a complete lack of mid-term market conviction. Coinciding with the whale exodus, the recent inflow of virtual assets to exchanges has also exploded. On-chain data indicates that a downward path where Ethereum can slide with the least resistance is already open, and market experts are strongly warning to be extremely cautious about the possibility of the $2,000 support level breaking.

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