Ethereum hovers around $2,290 on Friday, retreating from its weekly peak as major whale distributions and deteriorating ETF flows create headwinds.
A substantial whale address, reportedly connected to Bitcoin veteran Garrett Jin, moved 78K ETH into Binance on Friday. This followed an earlier 166K ETH deposit on Wednesday, totaling 244K ETH in potential liquidations within a three-day window.
The timing of these transfers correlates with ETH’s nearly 6% correction, sliding from $2,423 down to $2,277 during the identical timeframe.
Jin has demonstrated market timing ability previously, notably executing a leverage liquidation strategy on October 10 after establishing a $1.1 billion short stake. He also absorbed a $378 million loss from bullish positions in January.
On the fund flow front, US-based spot Ethereum ETFs reversed their four-day accumulation pattern on Thursday, recording $103.5 million in net withdrawals.
Analysis from CryptoQuant reveals Bitcoin-focused funds have accumulated 92,116 BTC since February’s market trough, whereas Ethereum funds have decreased holdings by 127,000 ETH during the corresponding timeframe.
“Throughout volatile conditions, numerous funds demonstrate greater readiness to trim ETH holdings initially, while preserving or expanding BTC positions as the ‘more secure’ digital asset allocation,” CryptoQuant noted.
Not every major holder is exiting positions. An address linked to Erik Voorhees purchased 2,920 ETH using 6.67 million USDT, at approximately $2,284 per token, data from Lookonchain shows.
This particular address had accumulated 123,184 ETH previously, representing $266 million in total value. While the connection to Voorhees remains unverified, market observers are monitoring this accumulation pattern.
Cryptocurrency analyst Ted highlighted on X that ETH breaking beneath $2,300 has amplified bearish momentum throughout the market, with declining investor confidence following the adverse ETF data.
From a technical perspective, Ethereum maintains position near its 20-day and 50-day exponential moving averages at approximately $2,307 and $2,265. The 50-day EMA offered cushion following a two-session downturn.
Trader Sky published chart analysis on X identifying three cup-and-handle formations developing beneath the $2,389 resistance barrier. The assessment suggests a potential rally toward $3,000 upon clearing that threshold.
Trader Cantonese Cat shared alternative technical analysis displaying ETH revisiting a downward trendline recently breached in late April, indicating a possible false breakout before any durable upward trajectory.
Critical support zones are positioned at $2,197 and $2,107. Overhead resistance barriers stand at $2,389, followed by $2,746.
ETH has yet to validate a decisive breakout above $2,389 as of Friday’s session, with pricing remaining contained below that threshold.
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