Ethereum faces $40m VC dump as ETH price slides below key support

Ethereum’s pressure continues to deepen as three major investment firms move over $40 million worth of ETH to exchanges within 24 hours. 

According to data shared by on-chain analyst The Data Nerd on Apr. 16, within the last 24 hours, Polychain Capital deposited 5,700 Ethereum ( ETH ), worth around $9.2 million, to centralized exchanges. Galaxy Digital sent another 12,500 ETH, approximately $20.3 million, while B2C2 added 6,540 ETH worth about $10.7 million.

The timing is critical. ETH has broken below the $1,600 mark, a major support zone that has now flipped into resistance. Most moving averages, from the 10-day to the 200-day, are flashing sell signals. The relative strength index is at 38.9, indicating weak momentum but not yet in oversold territory. The moving average convergence/divergence is pointing toward a possible short-term rebound, but overall, the market remains cautious.

If ETH fails to reclaim the $1,600–$1,620 zone soon, further downside toward $1,500 or even $1,450 is possible. However, a bounce from current levels could trigger a quick relief rally to $1,700, where heavier resistance awaits.

On-chain data only deepens the bearish sentiment. According to DeFiLlama data , Ethereum’s total value locked has dropped from around $70 billion at the start of the year to $46 billion. Monthly revenue also fell from $109 million in January to just $7.2 million in March.

The network has been losing ground to rivals like Solana ( SOL ), Base, and Tron ( TRX ), which are now drawing more users and revenue. Even decentralized apps like Uniswap ( UNI ) are performing better on competing chains.

U.S. spot ETF outflows add to the concern. ETH ETFs saw $14 million in outflows on Apr. 15, bringing total net losses to $158 million over the past month, according to SoSoValue data .

ETH lost 45% in Q1 2025, its third-worst quarter since 2016. With major players selling and fundamentals weakening, Ethereum’s road to recovery looks increasingly steep.