A foreign market analysis reports that, amid rising risk-off sentiment, Ethereum is facing increased selling pressure. On-chain tracking account Lookonchain revealed that an address inactive for three years recently sold 10,000 ETH, receiving approximately $17.72 million in USDC, at an average price of about $1,772 per ETH.
Large whale sales draw attention
The article suggests that this transaction has drawn attention not only because of its large size but also because the seller had remained inactive for a long time. A long-dormant address suddenly becoming active is often viewed by the market as a signal of shifting sentiment, particularly when prices have already weakened.
According to the article, Ethereum has declined more than 33% from its previous high of approximately $2,400, and the market is now watching whether the support level around $1,500 holds firm. The author concludes that large holders converting ETH to USDC appear to be preserving liquidity during this period of weak price action, rather than continuing to bear the risk of volatility.
Stablecoin and staking growth are slowing in tandem
The article also cites DeFiLlama data showing that the stablecoin market experienced a cumulative outflow of nearly $3.5 billion this week, with overall market size declining by more than 1.07%. USDC’s market capitalization has now seen net outflows for eight consecutive weeks, with cumulative outflows exceeding $3 billion.
The author believes that these fund movements reflect some large holders reducing their risk exposure. Meanwhile, although demand for Ethereum staking remains high, the marginal growth rate has shown signs of slowing. Data shows that approximately 3.103 million ETH are still waiting to enter the network, but nearly 100,000 ETH have exited the staking queue this month.
Foreign media report that short selling trades dominate.
The article also notes that Ethereum’s daily RSI has fallen to an extreme low not seen in nearly seven and a half years, even below levels observed during parts of the pandemic shock and the 2022 FTX event. However, the author points out that oversold conditions have not triggered significant buying interest, and spot demand remains weak.
Under this context, short positions recorded over $5.8 million in profits this week. The article suggests that this indicates a more defensive market sentiment; if leverage continues to rise and positions become further crowded, while spot buying fails to absorb demand at key levels, the risk of Ethereum falling below $1,500 increases.
Overall, this commentary ties together the quiet selling by large holders, outflows of stablecoins, slowed staking, and short-seller profits, suggesting that Ethereum’s short-term structure remains fragile, and the market will continue to watch for clearer signs of buying pressure returning near key support levels.