Whale selling and bearish technicals suggest ETH could plummet to $1,752—here's when the drop may accelerate.

Ethereum (ETH) price faces immense selling pressure after the $2,700 local top as blockchain data reveals investors cashed out nearly $1 billion in profits this week.

The price of Ethereum (ETH) is showing signs of substantial selling pressure following its recent local top at $2,700. As blockchain data reveals, investors have cashed out an enormous $835 million in profit this week alone, a trend that could spell trouble for ETH, currently trading at $2,500.

This selling spree is evident in the sharp increase in whale transactions exceeding $1 million. Past experience shows that such activity usually precedes a significant market shift. Notably, similar activity occurred before April's 35% crash, indicating large holders, or whales, who bought the dip are now exiting their positions.

This "buy low, sell high" behavior from major market players typically occurs at local tops, further solidifying the potential for a steeper crash.

Two technical red flags suggest that this scenario is unfolding and downside momentum is building:

After reaching a new high of $2,860 on May 11, the Relative Strength Index (RSI) began to diverge negatively with the price. This divergence usually signals a loss of momentum and an impending reversal.

The lower timeframe charts also show that the bullish breaker zone, defined by the transition of former resistance becoming support, has been breached. This zone, ranging from $2,069 to $1,872, held firm during April's crash, highlighting its significance.

If the price continues down and breaks the $1,872 support, it could fall to the next key level at $1,385, the same level it hit during the March crash. However, if the $1,872 support holds and the lower timeframe charts show signs of a bullish divergence, then it is possible that the buying opportunity could present itself sooner.

As the weekend approaches with lower liquidity levels in the market, the stage is set for a potential crash of the price of ETH, currently at $2,500.

March saw the price of ETH decrease by 35% over two weeks following the breaking of a similar technical structure. A bullish breaker zone, in which former resistance becomes support, was breached by the cryptocurrency.

The zone of $2,069 to $1,872, which held during April's crash, is crucial. If this zone is broken, it could lead to a drop to $1,385 or even lower.