Massive $1.8B Ethereum outflow could halt price decline

Cryptocurrency

Ethereum is holding around $2,135, about 9% below recent March highs. The daily chart currently reflects a classic distribution phase, with two key on-chain signals pointing in opposite directions.

Large investors sold heavily at peak levels, while a sharp decline in exchange balances indicates growing demand at current prices.

Large holders triggered the correction

Santiment data tracking wallets with 100,000–1,000,000 ETH shows steady accumulation until mid-March, when the price climbed toward $2,370. This buying drove a 21.44% recovery from the March 9 low near $1,950.

The turning point came around March 21. As the price peaked, large holder balances dropped sharply, while Ethereum fell from $2,332 to $2,053 within two days.

Ethereum large holder balances (Santiment)

This synchronized drop confirms a distribution phase. Large investors exited positions at higher prices, causing a roughly 13% correction. Importantly, this was not panic selling but a calculated institutional exit.

Ethereum exchange balances (Santiment)

Demand dominance amid outflows

Despite selling pressure, exchange data shows strong counter-demand. Between March 21–22, about 870,000 ETH were withdrawn from exchanges, reducing total balances from 8.12 million to 7.29 million coins.

ETH price analysis (TradingView)

This equals roughly $1.8 billion moved off exchanges. Transfers to cold wallets typically signal accumulation, as holders are unlikely to sell immediately.

Ethereum net realized profit/loss (Glassnode)

This divergence defines the short-term outlook. While large holders sold, other investors withdrew about $1.43 billion worth of ETH. The next move depends on which side dominates.

Key support and resistance levels

Ethereum is currently trading slightly above the 0.786 Fibonacci level at $2,027 — a key support tested twice before. A daily close above $2,148 would strengthen bullish momentum and open the path toward $2,350.

Glassnode data adds support to the bullish case: net realized profit/loss hit a peak of about +$380 million on March 23, suggesting profit-taking after weeks of losses.

However, if sentiment shifts negatively, Ethereum could lose support and fall to $1,928. A break below this level would invalidate the bullish scenario.

See also: "Bitcoin today: rises above $71K amid mixed signals"

#Ethereum (ETH) #Analitycs

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