Ethereum closed lower after being rejected at $240,000. Since then, the altcoin has fallen to a low of $2,220 and has risen slightly to $2,259 at the time of writing.
Despite the continued market downturn, some investors, especially large companies, are outflowing their funds, further expanding the market.
President Trump’s WLFI sells 8,500 units $ETH
Lookonchain reported that President Trump’s World Liberty-linked wallet offloaded $8,500 $ETH 19.27 million dollars. After the sale, Wallet repaid the outstanding loan and withdrew all funds from Aave.
Wallets linked to World Liberty may have sold their holdings as a precaution against the ongoing Aave crisis. The team thus joins a long list of institutional investors who have closed positions in Aave since the Kelp DAO scandal.
Additionally, another institutionally linked wallet also sold Ethereum ($ETH) held. Lookonchain reported that Genesis Trading deposited 1,482 $ETHworth $3.38 million, to Binance, OKX, Bybit.
These transfers attracted market attention, especially as the companies declared bankruptcy. Therefore, market participants decried this as potentially weighing down the market.
These two entities moved a total of 9982 $ETH Worth $22.65 million. When a major company sells in a tight market, it signals a strategic exit to lock in profits or reduce further losses.
Retail demand maintains market pressure
Although altcoins are under heavy seller-side pressure from major players, demand is also stable. This strength likely stems from small traders.
Looking at Spot Taker CVD, this metric has remained green throughout April. This suggests that buyers were very active in April.
The growing presence of buyers is the reason why Ethereum price has remained above $2,000 this month. More importantly, outflows from Exchange increased significantly throughout the month.
According to CoinGlass data, $24.2 billion $ETH while $24.07 billion flowed into the exchange. As a result, spot net flows fell 154% to $126 million, a clear sign of aggressive spot accumulation.
can $ETH Will the good momentum continue in May?
Ethereum ends April in a weakened position, similar to how March ended. This weakness is further reinforced by aggressive marketing by major companies.
As a result, downside risks remain strong. Looking at the Stochastic Momentum Index (SMI), this indicator is located deep in the negative zone, suggesting strong bearishness.
At the same time, EMA and MA crossover indicators are also on top $ETH We confirmed short-term weakness at $2,316 and $2,314, respectively.
These two indicators suggest that: $ETH We may see some losses in early May. Therefore, if large companies continue to sell; $ETH 2. Breaks the support at $2,000 and falls towards $2100.
However, if retail pressure sustains the market; $ETH We regained $2,316 and set ourselves up for a positive outlook for May, likely topping $2.5,000.
Final summary
- Ethereum has formed further lows since the $24,000 rejection, with the price hovering around $2,250, and the trend remains weak.
- If it continues to sell, $ETH There is a risk of breaking above $2.2,000 in early May and falling towards $2.1,000.
