Ethereum’s price has been declining since encountering resistance at $2,400, with notable sales from entities associated with Donald Trump’s World Liberty Foundation (WLFI) and Genesis Trading.

Ethereum Price Decline and Institutional Sales

The altcoin’s price has fallen to a low of $2,220 before a slight recovery to $2,259 as of this report. This downward trend coincides with broader market weakness and is intensified by substantial selling from large investors.

WLFI and Genesis Trading Activity

Data from Lookonchain reveals that a wallet linked to Trump’s WLFI offloaded 8,500 ETH for approximately $19.27 million. Following this sale, the wallet repaid all outstanding loans and withdrew remaining funds from the Aave protocol, potentially due to concerns surrounding the decentralized lending platform.

Simultaneously, Genesis Trading, currently in bankruptcy proceedings, deposited 1,482 ETH, valued at $3.38 million, across Binance, OKX, and Bybit. This move has led to accusations of potential market manipulation.

Retail Demand Offers Support

Despite the selling pressure from these large entities, the Ethereum market has shown resilience, supported by consistent demand from retail investors.

Spot Taker CVD and Exchange Outflows

Analysis of the Spot Taker CVD indicates a sustained green trend throughout April, suggesting robust buying activity from smaller-scale traders. Exchange outflows increased significantly in April, with $24.2 billion in ETH leaving exchanges, resulting in a 154% decrease in Spot Netflow to -$126 million, indicating aggressive spot accumulation.

Outlook for May

Ethereum is concluding April in a weakened state, mirroring the end of March. Continued selling pressure from large investors suggests downside risk remains prominent.

Technical Indicators

The Stochastic Momentum Index (SMI) is deep within the negative zone, signaling strong bearish momentum. The EMA and MA Crossover indicators are positioned above ETH at $2316 and $2314 respectively, reinforcing short-term weakness.

If large entities continue selling, Ethereum could fall below $2,200 and towards $2,100. However, sustained retail demand could lead to a reclaim of $2,316 and potentially a move above $2,500 in May.