Ethereum (ETH) faces potential bearishness as BlockTower Capital, a leading crypto venture capital firm, sold 9,232 ETH worth $25 million. According to LookonChain data, the sale was executed across multiple platforms, including FalconX, Cumberland, Wintermute Trading, and B2C2 Group. This large liquidation has fueled concerns within the crypto community, especially as it coincides with a broader decline in institutional buying interest.

Ethereum’s Technical Indicators Signal Bearish Trends

Ethereum recently faced rejection at the $2,700 resistance level, signaling possible bearish trends. The rejection aligns with the 78.6% Fibonacci retracement level, adding to the market’s bear state. However, the fear of death cross, indicated by the 50-day Exponential Moving Average (EMA) crossing below the 200-day EMA, suggests further downside risks. This technical pattern is often seen as a strong sell signal, prompting traders to reconsider their positions.

Whale Activity Deepens Market Worries

Adding to the concerns, a prominent Ethereum whale has been aggressively selling off large amounts of ETH. This whale, who acquired 1 million ETH during the Ethereum ICO at $0.31 per token, has offloaded 48,500 ETH, worth approximately $154 million, in the past month alone. This selling spree has intensified market fears, especially as it coincides with broader market instability and declining interest in Ether ETFs.

The Plus Token Saga and Its Impact on Ethereum

Complicating matters further is the ongoing fallout from the Plus Token Ponzi scheme. Recent investigations revealed that significant Ethereum assets linked to the now-defunct Bidesk exchange have been transferred, with a portion of these assets being funneled through addresses connected to the Plus Token scheme. Last week, $63.1 million worth of Ethereum, seized about Plus Token, was transferred, coinciding with the whale’s latest dump of 5,000 ETH.

Potential for Further ETH Price Decline

Ethereum’s price hovers around $2,656 after its recent rejection at $2,700. The death cross, combined with a negative Moving Average Convergence Divergence (MACD) reading, suggests further bearish pressure. If Ethereum fails to hold the $2,500 support level, it could trigger a sell-off toward the $2,000 mark.

Rebound Possible, If? 

Despite these bearish indicators, there is a possibility for a rebound. Historically, Ethereum is showing a pattern similar to past bull cycles, which could lead to a breakout to a new all-time high in the fourth quarter. If Ethereum manages to breach the immediate $2,700 hurdle, it could ignite a rapid upward price movement, potentially leading to a new bullish phase with targets toward $3,000 and beyond. However, the current market sentiment remains cautious, with many traders preparing for potential further declines.

Ethereum’s pricing issues: will strong fundamentals help it recover in September? Weigh in.