Ethereum (ETH) Plummets 21% in June Alone... Whales 'Scoop Up' Supply Dumped by Retail Investors

▲ Ethereum (ETH)/ChatGPT Generated Image

Ethereum (ETH) plummeted 21.6% in June, facing a simultaneous massive sell-off by retail investors and risk-aversion pressure in the U.S. market. However, whale accumulation and an increase in staking are partially absorbing the downward pressure.

According to FXStreet, a cryptocurrency specialized media outlet, on July 4 (local time), Ethereum fell by 21.6% in June, marking its largest monthly decline since November last year. The outlet analyzed that risk-aversion sentiment and increased volatility following the sharp drop on October 10 led the bearish trend in June, with selling pressure from retail investors and U.S. market participants being particularly strong.

Wallets holding 100-1,000 ETH and 1,000-10,000 ETH collectively offloaded 510,000 ETH onto the market over the past month. These investor groups have consistently reduced their holdings since the sharp drop on October 10, with the decrease totaling 3.91 million ETH during this period. In contrast, whale wallets holding 10,000-100,000 ETH engaged in bargain hunting in June, accumulating an additional 600,000 ETH.

A significant portion of the whale accumulation moved into staking. Over the past month, the staked Ethereum supply increased by approximately 763,000 ETH, reaching an all-time high of 40.5 million ETH. This year, investors have newly staked 4.5 million ETH. The outlet assessed that long-term holders are choosing a strategy of earning returns and awaiting recovery rather than exiting the market.

Weak demand in the U.S. market also exacerbated the bearish trend in June. The Coinbase Premium Index, which reflects U.S. investor sentiment, fell to -0.169, its lowest level since February. Ethereum spot ETFs recorded net outflows for four consecutive weeks in June, with the total net outflow amounting to approximately $529 million. In the derivatives market, Ethereum futures open interest decreased by 1.46 million ETH.

The technical trend is a battleground between a short-term rebound and overhead resistance. Ethereum has broken through the $1,741 resistance level and is maintaining above its 20-day exponential moving average (EMA) of $1,676. However, the 50-day EMA at $1,810 and the 100-day EMA at $1,984 are capping the upside. If a daily close above $1,806 is confirmed, then $1,984, $2,019, and $2,108 are presented as the next resistance levels. On the downside, if $1,676 is breached, $1,524, $1,405, and the long-term base line of $1,156 are mentioned as successive support levels.

[Article Key Summary]

-Ethereum fell by 21.6% in June, marking its largest monthly decline since November last year.

-Retail investors sold 510,000 ETH, but whales accumulated 600,000 ETH, and staked ETH volume reached an all-time high of 40.5 million ETH.

-Ethereum spot ETFs recorded net outflows of approximately $529 million in June, and the $1,806 to $1,810 range was presented as short-term resistance.

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