Ethereum (ETH) is facing renewed selling pressure after major holders reduced their positions by around 550,000 ETH last week, worth around $880 million. scale distribution It reflected increased caution among major market participants and increased the available supply entering the market.
As a result, Ethereum lost ground and slid towards the $1,560 support area highlighted on the daily chart. The decline is also in line with the weakening market structure after Ethereum failed to regain higher resistance levels earlier this month.
Instead of attracting aggressive follow-on buying, each recovery attempt was met with renewed selling pressure.
Despite aggressive whale selling, buyers bounce back
Spot Taker CVD presented a different picture of whale activity.
At the time of writing, Taker Buy Dominant stated that market buyers have regained control of executed spot orders despite the large dispersal from major shareholders. This shift showed that retail participants and small investors were absorbing some of the additional supply entering the market.
Buying interest strengthened near support rather than fading after the decline. Still, renewed demand has yet to translate into a definitive uptick as whale sales have remained high throughout the week.
Therefore, buyers faced the difficult task of overcoming persistent overhead supply before Ethereum could stage a stronger recovery.
Ethereum struggles to maintain major support
Ethereum revisited The $1,560 demand zone after completing a sharp decline from the $2,000 resistance zone.
The daily chart showed that whenever the price approached this zone, buyers responded, thus preventing another sudden crash. This repeated defense showed that the level continues to attract demand despite broader weakness in the market.
At the time of writing, the RSI remained below the neutral 50 level and rose to around 33; This shows that the upward strength has not fully recovered. Despite this, the indicator remained above its recent low, indicating that selling pressure has eased compared to the previous crash.
The price also continued to form higher recoveries from the support despite trading below the major resistance levels at $1,800 and $2,000. If buyers continue to defend the current zone, Ethereum may attempt another rally towards these resistance levels.
But a loss near $1,560 would likely subject the market to another low before stronger demand emerges.
Liquidity barrier could shape Ethereum’s next move
Binance ETH/USDT Liquidation Heat Map showed the largest concentration of liquidity around the $1,590-1,600 region.
These clusters of intense liquidations represented the closest barrier to the current market price and highlighted where volatility could increase if Ethereum continues its recovery.
Price had already come close to this area several times without creating a sustained breakout. This behavior showed that sellers remained active in their pockets of liquidity even as buyers defended lower levels.
Clearing the $1,590-1,600 cluster could trigger additional short liquidations and encourage the price to challenge the next resistance near $1,800. Otherwise, repeated rejection in this zone will strengthen the case for a retest of $1,560, where buyers will need to absorb renewed selling pressure once again.
Can ETH regain control?
Ethereum showed signs of stability after buyers defended the $1,560 support despite intense whale selling. The strengthening of spot demand also provides an encouraging signal from below the surface.
However, the market will likely need to break through the $1,590-$1,600 liquidity barrier for a broader recovery to occur. Failure to overcome this zone could cause Ethereum to remain trapped near support, increasing the risk of another downside test.
Final Summary
- Ethereum whales distributed 550,000 ETH as buyers continued to absorb supply near the $1,560 support.
- While spot purchases strengthened despite the whale sale, intense liquidity concentrated around $1,590-1,600.
