Ethereum (ETH) is facing immense pressure as whales dump the coin. According to recent reports, several firms are dumping ETH to reinvest their funds in other coins. As the whale sell-offs become rampant under current market conditions, this is having a significant hit on the price of Ethereum.
For instance, the ETH/BTC ratio has dropped to a level last seen in 2020. This suggests that while ETH is struggling, BTC is growing in attraction on the other hand. But will the Ethereum price struggles continue?
Massive Sell-Off by Ethereum Whales
Whales seem to be losing faith in Ethereum after the recent price performance by the top altcoin by market cap. According to recent reports by Lookonchain, an on-chain data tracking platform, these whales are dumping Ethereum at an alarming rate.
Notably, Galaxy Digital is selling its Ethereum coins and reinvesting in Solana (SOL). “It seems that Galaxy Digital is selling $ETH and buying $SOL!” Lookonchain’s post on April 22 read.
Furthermore, data by Arkham Intelligence shows that Galaxy Digital has been selling ETH tokens over the last two weeks. Within this period, the firm deposited a total of 65,600 ETH worth $105.48 Million to Binance and withdrew 752,240 SOL worth $98.37 Million from the exchange.
However, this is not the only incident involving a whale dumping Ethereum. Another post by Lookonchain reported that Ethereum Foundation could be offloading ETH.
The data by Arkham Intelligence confirmed that the wallet linked to the Ethereum foundation made a deposit of 1,000 ETH worth $1.58M to Kraken on April 22. This wallet had received a total of 84,513 ETH from the Ethereum Foundation 10 years ago, when the price of ETH was at $1.2.
ETH/BTC Drop to 2020 Lows As Whales Flip Bearish on ETH
With the big institutions dumping Ethereum, their actions have put a lot of pressure on the price. The ETH/BTC ratio, for instance, has dropped to 0.01839, a level last seen in 2020. This drop in the ratio shows that Ethereum is performing poorly against Bitcoin.
As of this writing, Coinmarketcap data shows that Bitcoin is trading at $88,669.75 with a 2.00% surge on the day. On the other hand, Ethereum is trading at $1,629.91, marking a slight 0.35% pump. Hence, this serves as part of the reason as to why the ETH/BTC ratio is dipping.
BTC ETFs Record Inflows While ETH ETFs Continue to Bleed
Besides massive whale sell-offs, Ethereum spot ETFs have continued to experience outflows. But, Bitcoin spot ETFs are flourishing on the other hand.
According to data by SosoValue, Bitcoin recorded $381.40M net inflows on April 21. Notably, all the 12 BTC ETFs recorded inflows. On the other hand, Ethereum recorded -$25.42 million in net outflows on the same day. It’s worth noting that not a single ETH spot ETF recorded an inflow.
This further adds pressure to the price of ETH as it suggests that institutional demand for Ethereum is plummeting. Furthermore, this confirms that institutional investors are opting for BTC over ETH.
With continued whale offloading and dampening institutional demand, the price of Ethereum stands at a risk of dipping. Investors must thus be cautious in the short-term.
