Can Ethereum hold $2.2K after WLFI and Genesis sold over 9,900 ETH?

Ethereum has closed at lower lows since it faced rejection at $2.4k. Since then, the altcoin has dropped to a low of $2,220 before slightly rising to $2,259 at press time. 

Despite the prevailing market weakness, some investors, especially large entities, are cashing out, further stretching the market. 

Trump’s WLFI sells 8500 ETH

Lookonchain reported that a wallet linked to Trump’s World Liberty offloaded 8500 ETH for $19.27 million. After the sale, the wallet repaid its outstanding loans and withdrew all the funds from Aave. 

The World Liberty-linked wallet potentially sold its holdings as a precautionary measure over the ongoing Aave crisis. Thus, the team joined a long list of institutional investors who have closed positions on Aave since the Kelp DAO incident.

Additionally, another institutionally linked wallet also sold its Ethereum [ETH] holdings. Lookonchain reported that Genesis Trading deposited 1,482 ETH, worth $3.38 million, to Binance, OKX, and Bybit. 

These transfers attracted market attention, especially because the entity declared bankruptcy. Thus, market players accused it of potentially squeezing the markets against. 

In total, these two entities moved 9982 ETH worth $22.65 million. When large entities sell in squeezed markets, it signals a strategic exit, either to lock in gains or to reduce further losses.

Retail demand holds the market pressure

Although the altcoin has faced significant sell-side pressure from large entities, demand has also held steady. This strength is most likely arising from small-scale traders.

Looking at the Spot Taker CVD, this metric has remained green throughout April. This suggests that buyers have been extremely active in April.

The extended buyer presence explains the Ethereum price holding above $2k this month. Even more importantly, Exchange outflows rose significantly through the month.

CoinGlass data showed that $24.2 billion in ETH flowed out of exchanges, while $24.07 billion flowed into them. As a result, Spot Netflow dropped 154% to -$126 million, a clear sign of aggressive spot accumulation.

Can ETH hold a positive momentum in May?

Ethereum ends April on a weakened position, just like March ended. This weakness is further strengthened by large entities aggressively selling.

As a result, the downside risk remains stronger. Looking at the Stochastic Momentum Index (SMI), this indicator sits deep into the negative zone, suggesting strong bearishness.

At the same time, the EMA and MA Crossover indicator also sit above ETH at $2316 and $2314, respectively, confirming short-term weakness.

These two indicators suggest that ETH could see some losses at the beginning of May. Thus, if large entities continue to sell, ETH will breach the $2.2k support and drop towards $2100.

However, if retail pressure holds the market, ETH will reclaim $2316, setting the stage for a positive May outlook and likely move above $2.5k.

Final Summary

• Ethereum has been forming lower lows since the $2.4k rejection, with price hovering near $2,250 and the trend is still weak.
• If selling continues, ETH risks breaking $2.2k and sliding toward $2.1k in early May.