Ether.fi (ETHFI) has been in a strong downtrend since its rejection at $0.64 three weeks ago, falling to a low of $0.42.
At press time, ETHFI was trading below its MA ($0.44) and EMA ($0.45), highlighting strong bearish momentum. Amid this decline, investors, particularly whales, largely capitulated and quickly liquidated their positions.
Ether.fi whale dumps 3.6 million tokens
After ETHFI surged to $0.64 on March 21, the altcoin experienced extreme profit-taking and sellers took control of the market. Since then, the altcoin has primarily seen selling activity, with CVD Spot Taker showing sales dominance over the past three weeks.
With the metric flashing red, this suggested that sellers had dominated the market, driving out buyers completely. This selling activity has been observed among wealthy investors, including whales.
Lookonchain reported that a whale withdrew 3.6 million ETHFI from Binance and sold it for $1.587 million in a single transaction. The whale entered and exited at the same price levels, suggesting a hasty exit driven by fear of holding the asset. This behavior highlights investors’ desire to avoid losses and underlines strong bearish sentiment.
Along with this, sales volume has exceeded purchase volume for five consecutive days. On April 12, for example, ETHFI recorded 3.16 million sales volumes compared to 3 million purchase volumes.
Traditionally, sustained selling pressure weakens market structure, increases downside risk and causes prices to fall.
Is $0.4 Support Under Threat?
With Ether.fi under extreme selling pressure from all market participants, the altcoin’s downward momentum has strengthened.
In fact, its Relative Strength Index (RSI) made a bearish crossover and fell deeper into bearish territory at 36 at the time of writing. This shows that the bears currently have complete control over the market.
At the same time, ETHFI moved below its short-term MAs, confirming the strength of the trend. Often, when these moments are organized in this way, they signal the likelihood that the dominant trend will continue.
Additionally, ETHFI is testing the $0.4 support level. If the selling pressure continues, this level will not be able to be maintained. If this happens, the altcoin will drop to $0.38.
To invalidate this bearish outlook, the altcoin needs to reverse the $0.45, MA, and EMA levels. By doing so, the altcoin will be able to reclaim $0.5, paving the way for a significant rebound.
Final summary
- The Ether.fi whale panicked and dumped 3.6 million ETHFI for $1.5 million.
- ETHFI fell 4%, touching a three-week low at $0.42, crossing the MA and EMA, signaling strong bearish pressure.
