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The Ethereum market faces increased selling pressure as the Chinese government begins unloading another $1.3 billion worth of Ethereum.
According to on-chain data analysis from OTC Research, the Chinese government has initiated the sale of 542,000 Ether (ETH) within the last 24 hours. During this period, it transferred 15,700 ETH to an unknown address, triggering speculation of impending sales of the tokens seized from the multibillion-dollar PlusToken crypto ponzi scheme.
Additionally, the Chinese authorities sent another 7,000 Ether to addresses linked to various cryptocurrency exchanges. These actions have amplified the bearish sentiment in this market, which existed due to whale selloffs, including those by US spot Ether ETF issuers.
A Bearish Sentiment
Despite the market's ability to absorb large transactions, the short-term outlook remains bleak. The price of Ethereum has dropped by 2.5% in the past 24 hours, currently trading around $2,374, per current Coingecko data.
In the past two months, Ethereum's price has struggled to sustain a bullish momentum, repeatedly failing to break through resistance levels around $2,700. A rejection at this level once again pushed the price below $2,400.
Ethereum has been trying to rebound from the crucial support zone between $2,300 and $2,250, but sustained selling pressure, particularly from large holders like governments and ETF issuers, has hampered this recovery.
Technical analysts have noted potential bullish patterns in ETH's price movements. According to a prominent analyst, Ali Martinez, ETH is forming a symmetrical triangle on the daily time frame, which often precedes a significant breakout.
Others have pointed out an inverted head and shoulders pattern, hinting that the digital asset could trigger a bullish run if it breaks through the $2,700 resistance level.
Ethereum Network's Growth
Meanwhile, the broader Ethereum network has shown robust growth despite market volatility. Over 34.8 million Ether, or roughly 28.9% of the total circulating supply, is currently staked by validators to secure the network.
Nonetheless, the short-term effects of significant whale selloffs-especially from the Chinese government-will likely keep Ethereum's price downward over the short term.
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