Ethereum Experiences Potential Selling Pressure as Whales' Unrealized Gains Reach Peak Levels in 2021
In recent days, there have been signs of selling by Ethereum whales and institutional investors, which could pose significant challenges for the cryptocurrency reaching the $5,000 mark. This is according to a bearish outlook issued by Citigroup, along with the outflows from spot Ethereum ETFs.
On Wednesday, spot Ethereum ETFs experienced a net outflow of $1.89 million, indicating selling by institutional investors. This selling was observed despite a 25 bps Fed rate cut on the same day. Similarly, Bitwise's ETHW saw an outflow of $9.7 million on Wednesday. Fidelity's FETH also recorded an outflow of $29.19 million on the same day.
Analyst Ali Martinez predicts that the TD Sequential indicator has flashed a sell signal on Ethereum, indicating a potential drop to $4,570. Meanwhile, analyst Ted Pillows predicts that ETH price could consolidate below its $4,700 resistance and potentially correct towards $4,000.
However, it's worth noting that institutional holdings of Ethereum have been on the rise, with corporations currently holding over 4.1 million ETH. US Ethereum ETFs also recorded record inflows in August 2025.
Despite the selling pressure, Ethereum's trading volume has increased by 28% in the last 24 hours. The 24-hour low and high for ETH price are $4,429 and $4,643, respectively. The cryptocurrency has soared 2% in the past 24 hours, trading near $4,600.
Interestingly, long-term holders have been reducing their Ethereum holdings in recent months. This could be a sign of profit-taking activity, as Ethereum whales' unrealized profits have reached levels comparable to the 2021 peak, a benchmark often used for profit-taking.
A notable example of this is a whale who moved 5,000 ETH worth $22.84 million to crypto exchange Binance, realizing an overall profit of $5.08 million.
Despite these challenges, the Federal Reserve has resumed its interest rate cuts, which could potentially provide a boost to the cryptocurrency market. However, the bearish outlook from Citigroup and the selling pressure from whales and institutional investors could counteract this positive factor.
As always, it's important for investors to closely monitor the market and make informed decisions based on the latest developments.
