The situation with Ethereum is a bit chaotic right now. Big buyers are still buying, but some people have started selling. Companies that specialize in hoarding ETH have already spent $3.6 billion to buy 795,000 ETH in August, among which BitMine, a recent center of public opinion, is the main player, and they still have a big appetite.
BUT! Big whales in the market are frantically converting to cash. Several early players and institutions, such as Longling Capital, have been selling large amounts of ETH over the past few days, totaling tens of thousands and worth over $100 million. It feels like prices are high, and some want to 'cash in their gains.'
However, currently, money from ETFs is flowing out. Following a small outflow the day before yesterday, yesterday, America’s ETH ETF saw a net outflow of nearly $200 million! Even BlackRock, which had been buying continuously, has seen outflows of over $86 million. Money is not just coming in like before; institutional funds seem to be retreating in the short term.
Prices are under significant pressure as well. ETH dropped below $4,200 today, falling over 3% in a single day. Experts point out that $4,700 is a strong resistance level, like a wall, which has been a point of correction multiple times in history. The market might be a bit 'overheated' right now.
What’s more troublesome is that 910,000 ETH are waiting to exit staking, worth nearly $4 billion! With so many potential sell orders waiting to come out, it puts pressure on the price. Experts predict this could lead to another drop of 5-7% for ETH.
Moreover, we need to keep an eye on key support levels. Analysts are focused on the $4,180 level. If it can hold, the correction could still be considered 'healthy,' and there may still be a chance to break new highs later. However, if it cannot hold, it may continue to test lower levels.
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