Ether.fi [ETHFI] has been in a steep 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), underscoring strong bearish momentum. Amid this decline, investors, particularly whales,  have largely capitulated, exiting their positions quickly.

Ether.fi whale dumps 3.6 million tokens 

After ETHFI climbed to $0.64 on the 21st of March, the altcoin experienced extreme profit-taking, and sellers took over the market.  Since then, the altcoin has mostly recorded sell-side activity, as the Spot Taker CVD showed sell dominance for the past three weeks. 

With the metric flashing red, it suggested that sellers had dominated the market, pushing buyers out entirely. This selling activity has been observed among high-net-worth investors, especially 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 hurried exit driven by fear of holding the asset. This behavior highlights investors’ eagerness to avoid losses and underscores strong bearish sentiment.

Coupled with that, sell volume has outweighed buy volume for five consecutive days. On the 12th of April, for instance, ETHFI recorded 3.16 million in sell volume compared to 3 million in buy volume. 

Traditionally, sustained selling pressure has weakened market structure, increased downside risk, and led to lower prices.

Is $0.4 support at risk?

With Ether.fi under extreme selling pressure from across the market participants, the altcoin’s downward momentum has strengthened.

In fact, its Relative Strength Index (RSI) made a bearish crossover and dropped deeper into the bearish territory at 36 as of writing. This shows that bears currently have total control of the market.

At the same time, ETHFI dropped below its short-term MAs, confirming the trend’s strength. Often, when these moments are set up this way, they signal the likelihood that the prevailing trend will continue.

Moreover, ETHFI is testing the $0.4 support level. If the selling pressure continues, this level will fail to hold. If this happens, the altcoin will drop to $0.38.

To invalidate this bearish outlook, the altcoin needs to flip the $0.45 level, MA, and EMA levels. In doing so, the altcoin will be positioned to reclaim $0.5, paving the way for a significant rebound.

Final Summary

• Ether.fi whale panicked and dumped 3.6 million ETHFI for $1.5 million. 
• ETHFI dropped 4%, touching a three-week low of $0.42, breaching MA and EMA, signaling strong bearish pressure. 

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Author: Gladys Makena