Ethereum Price Drops to $4,330
Ethereum (ETH) fell 4% on Thursday. Medium-scale holders have sold over 1.22 million ETH since Monday. Investors booked about $2.5 billion in profits during this time. ETH is now testing support at $4,270 after facing resistance at a descending trendline.
Medium-Scale Holders Sell 1.22 Million ETH
After ETH reached nearly $4,700 on Tuesday, it dropped almost 8% over three days. Medium-scale holders, with 1,000 to 10,000 ETH, sold 1.22 million ETH since Monday, according to CryptoQuant data. Meanwhile, whale wallets holding 10,000 to 100,000 ETH increased their holdings by 200,000 ETH.
This selling shows medium-scale holders took profits during the price drop. Santiment data shows investors realized nearly $2.5 billion in profits since Monday. Most selling came from short-term holders.
Historically, pullbacks from medium or small holders are short if whales keep buying. Grayscale also increased staking of ETH through its spot ETFs. On Wednesday, it staked 857,600 ETH worth $3.83 billion, according to Lookonchain data. This adds scarcity to ETH supply.
Ethereum Price Outlook: Support at $4,270
ETH futures saw $181.4 million in liquidations in the last 24 hours. Long positions accounted for $152.5 million of these, per Coinglass. After rejecting a descending trendline and falling below the 50-day moving average, ETH seeks support near $4,270. Bulls held this level between August 26 and September 10.
If ETH falls further, it could test support between $4,100 and $4,000. This range is supported by the 100-day moving average. The Relative Strength Index (RSI) and Stochastic Oscillator show weakening bullish momentum.
