Ethereum selling pressure climbs to highest since 2024 market slump

Ethereum is experiencing its steepest wave of Eth selling pressure since November 2024, as short-term traders dominate market activity in early September. The asset, which remains above $4,300, has been under consistent selling pressure fueled by profit-taking and liquidations.

According to data from CryptoQuant, the seller-taker ratio has remained below 1 for several consecutive days — a technical signal that selling outweighs buying.

“When the ratio slips under 1, it highlights rising Eth selling pressure and points to potential downside,” — CryptoQuant analysts said in a market update.

Despite the downturn, Ethereum’s long-term fundamentals remain intact, with whale wallets steadily accumulating tokens. However, uncertainty over September’s historically weak performance adds to investor caution.

Market data shows sustained weakness

Ethereum entered its current phase of Eth selling pressure in late August, when traders began closing long positions and securing gains. As of Tuesday, ETH traded at $4,313.75, equivalent to 0.039 BTC, holding a market dominance of 13.3%. Among the top five crypto assets, it was the week’s worst performer.

Open interest in Ethereum futures stands at $27 billion, indicating high market engagement, but shifts in the long/short ratio suggest volatility ahead. On Binance, derivative positions reflect expectations of a trading range between $4,200 and $4,500, with little evidence of a dramatic short squeeze.

Some analysts argue whales are intentionally contributing to Eth selling pressure by releasing supply into the market. “It appears that certain large holders are strategically keeping prices capped, allowing for steady profit realization,” — Marcus Li, senior trader at BlockTower Capital, told Bloomberg.

Whales accumulate despite profit-taking

While short-term movements reflect consistent Eth selling pressure, whales continue to expand their holdings. Accumulation addresses now control roughly 24 million ETH, even as older entities sell into rallies.

One whale recently purchased $185 million worth of Ethereum, underscoring long-term confidence in the asset’s role in decentralized finance (DeFi). Additionally, ETF inflows and treasury allocations continue to support institutional demand.

Still, the concentration of ownership has shifted significantly. Retail investors have gradually exited positions over the past quarter, leaving whale activity as the primary driver of price direction. Analysts caution that this dynamic makes short-term moves more volatile, especially during periods of intensified Eth selling pressure.

Seasonal trends add caution

Historically, September has been a weak month for Ethereum, and the current Eth selling pressure reinforces that seasonal trend. However, October has often delivered recovery, providing some optimism for traders awaiting a bounce.

On Hyperliquid, Ethereum long positions account for 64% of open interest, reflecting confidence among some traders in the asset’s medium-term outlook. Ethena (ENA), a protocol heavily tied to Ethereum performance, shows more than 75% long positioning, indicating expectations of upward momentum.

Industry experts remain divided on whether Ethereum will retest $5,000 or fall back toward $3,500. For now, Eth selling pressure is likely to dominate headlines, keeping short-term traders on edge.

“Ethereum continues to play a central role in DeFi, serving as collateral and powering gas fees. These fundamentals remain strong, but the market is still digesting excess supply from short-term sellers,” — Sofia Karim, blockchain strategist at Glassnode, said in a research note.