The altcoin market faces potential selling pressure as the defunct trading firm Alameda Research unloaded over $3.5 million worth of Ethereum, following a pattern set by its $17 million Solana sale weeks prior. Alongside institutional shorting from entities like Fasanara Capital, this activity suggests possible near-term headwinds for both cryptocurrencies, with Ethereum testing a key resistance and Solana showing declining network activity.
Potential selling pressure looms over the altcoin market linked to the now-defunct Alameda Research. The firm recently unstaked over 1,695 ETH, worth more than $3.56 million, hinting at a possible sell-off for Ethereum and Solana. Historically, its distribution events have resulted in significant sell-offs for associated assets.
According to Arkham data, this follows a similar move three weeks ago where the firm sold over $17 million in SOL tokens. Alameda Research still holds substantial crypto assets, including about $300 million in SOL, indicating potential future liquidation pressure.
Other institutions are also positioning against Ethereum. A trader linked to Fasanara Capital sold $45 million worth of ETH, as noted by on-chain data. This selling pressure coincides with increased long liquidations on major altcoins.
On the 4-hour chart, Ethereum price was showing strength while trading around a resistance zone that has held since February. The MACD indicator was bullish at press time, but large transaction volume had declined sharply from $17.5 billion to $5.67 billion.
Meanwhile, Solana’s price action was trading sideways, having lost much of its correlation with Ethereum. The altcoin may test the $76 support level after trading near the range lows, coinciding with a drop in active addresses from 7 million to 4.69 million in two months.
The signals suggest Ethereum and Solana might experience a short-term decline if history repeats. However, a break above $2,100 for ETH or SOL maintaining its support could invalidate the anticipated price drop.
