Ethereum Crash Ahead? Whales Dumping ETH Sparks $1,700 Fears!

ETH is still trading below $2,000, which triggers more discussions about the downward move. With large investors selling ETH and outflows from Ethereum ETFs increasing, the risk of a downturn is growing. Traders are now watching key levels to determine if Ethereum will hold or fall further.

Ethereum ETFs See Continued Outflows

Ethereum ETFs in the United States have seen three straight weeks of net outflows. Over the past week, investors pulled out $143.13 million, marking a decline in institutional interest. On March 14 alone, the daily outflow reached $35.30 million.

Since February 20, Ethereum spot ETFs have recorded just one day of inflow, which occurred on March 4. The total outflows in March have now reached $262.96 million. The ongoing reduction in ETF holdings suggests that institutions are stepping away from Ethereum, raising concerns about price stability.

Whale Activity Signals Bearish Sentiment

Large Ethereum holders are also reducing their positions. According to data from Ali Charts, whales moved 130,000 ETH out of their wallets in the past week. Wallets holding between 1,000 and 10,000 ETH dropped from 12.87 million to 12.74 million ETH during this period.

Whales have moved off over 130,000 #Ethereum $ETH in the past week! pic.twitter.com/lrin2Npj8l

— Ali (@ali_charts) March 17, 2025

A whale who had been inactive for three years recently sold 1,014 ETH worth $1.92 million. The investor initially acquired the tokens at an average price of $1,771. Despite holding Ethereum through major market swings, the profit from this sale was only $126,000. This movement suggests that some long-term holders are selling before further declines.

Additionally, blockchain data from Lookonchain shows that a large investor has placed a short position on Ethereum against Bitcoin. The whale withdrew 3,644 cbBTC (worth $304 million) from Coinbase and deposited 3,034 cbBTC (worth $253 million) on Aave. They then borrowed 79,638 ETH (worth $152 million) and sent it to Coinbase, possibly to sell.

This giant whale continued to short the ETH/BTC trading pair.

The whale has withdrawn 3,644 $cbBTC($304M) from #Coinbase and deposited 3,034 $cbBTC($253M) to #Aave.

Then borrowed 79,638 $ETH($152M) from #Aave and deposited to #Coinbase.https://t.co/8I9i2JWjd9 pic.twitter.com/yPPL0gNMYq

— Lookonchain (@lookonchain) March 17, 2025

Ethereum Price Nears Key Support Levels

Ethereum remains indecisive between the $1,931 resistance level and the $1,850 support level. The price has reached the top of an ascending triangle’s resistance line, suggesting a potential inability to increase further. At the time of writing, Ethereum has a price of $1,915.05, and the 24-hour volume is $10.5 billion. 

Technically, Ethereum has bearish signals, and breaking the $1,850 level may lead to $1,754 as the new trading floor. If the bearish pressure persists, the price can fall to $1,700. However, if ETH recovers and climbs above the $1,931 barrier, it will be able to reach the 100 EMA with a value of $2,083.