Ethereum (ETH) faced renewed selling pressure after major holders reduced their positions by about 550,000 ETH, worth approximately $880 million, over the past week. size distribution It reflects increased caution among major market participants and increased available supply entering the market.
As a result, Ethereum lost strength and fell towards the $1,560 support area shown on the daily chart. The decline is also in line with the weak market structure after Ethereum failed to regain higher resistance levels earlier this month.
Instead of attracting intense buying, each recovery attempt has been met with renewed selling pressure.
Buyers returned despite heavy selling of whales
Spot Taker CVD provided a different picture of whale activity.
At the time of writing, Taker Buy Dominant noted that market buyers have regained control of executed spot orders despite heavy distribution from large holders. This shift indicates that retail participants and small investors have absorbed part of the additional supply entering the market.
The desire to buy strengthened near support instead of disappearing after the decline. However, the renewed demand has not yet translated into a decisive breakout as whale sales remained significant throughout the week.
Buyers therefore faced the difficult task of overcoming the persistent oversupply before Ethereum could make a stronger recovery.
Ethereum is struggling to protect key support
Ethereum review $1,560 demand area after completing a sharp decline from the $2,000 resistance area.
The daily chart showed buyers responding every time the price approached this area, preventing another immediate collapse. This recurring defense suggests that the level has continued to attract demand despite broader market weakness.
At the time of writing, the RSI remains below the neutral 50 level and is recording around 33, indicating that the upward strength has not fully recovered. Despite this, the index remained above its recent lows, indicating that selling pressure has eased compared to the previous collapse.
The price also continued to form bounces above support, although it is still trading below the key resistance levels at $1,800 and $2,000. If buyers continue to defend the current area, Ethereum may attempt another rebound towards those resistance levels.
However, a loss of $1,560 would likely expose the market to another bearish wave before stronger demand emerges.
A liquidity barrier could be the next step for Ethereum
The Binance ETH/USDT liquidation heatmap showed the largest concentration of liquidity located around the $1,590-$1,600 region.
These heavy liquidation clusters represent the closest hurdle above the current market price and highlight where volatility could increase if Ethereum continues to recover.
The price has already approached this area several times without resulting in a sustained breakout. This behavior indicates that sellers remained active around the liquidity pocket even as buyers defended lower levels.
Clearing the range between $1,590 and $1,600 could trigger additional short liquidations and encourage the price to challenge the next resistance near $1,800. Otherwise, repeated rejection within that area would strengthen the case for another retest of the $1,560 area, where buyers will once again need to absorb renewed selling pressure.
Can ETH regain control?
Ethereum showed signs of stabilization after buyers defended the $1,560 support despite heavy whale selling. Spot demand also strengthened, offering an encouraging signal beneath the surface.
However, the market will likely need to clear the $1,590-$1,600 liquidity barrier before any broader recovery can develop. Failure to overcome this area could keep Ethereum confined near support and increase the risk of another bearish test.
Final summary
- Ethereum whales distributed 550,000 ETH as buyers continued to absorb supply near the $1,560 support.
- Spot buying strengthened despite whale selling, while heavy liquidity remained concentrated around $1,590-$1,600.
