Ethereum (ETH) has experienced a sharp 11% decline in the past 24 hours, falling below the crucial $3,300 mark. This dramatic drop follows significant selloffs by Ethereum whales and the Ethereum Foundation, triggering heavy long-position liquidations and a wave of negative sentiment in the market. Analysts now predict the next key support level for ETH at $2,800.
Ethereum Whales Unload Massive Holdings
Ethereum whale entities have contributed significantly to the ongoing price slump by depositing large quantities of ETH into exchanges. Blockchain analytics platform Lookonchain revealed that one whale transferred 22,746 ETH (worth $77.7 million) to Binance, using the withdrawn stablecoins to repay debts on Aave and Spark. Over two days, this whale has deposited a total of 31,968 ETH ($122.3 million) into Binance.
Another whale recently moved 49,910 ETH, valued at $170 million, to Binance within an eight-hour window, withdrawing $137.8 million in stablecoins. These large-scale movements, coupled with broader market turbulence, have led to cascading liquidations. Ethereum’s rejection at the $4,000 mark has seen its price correct over 17.5% to its current levels.
Adding to the sell pressure, the Ethereum Foundation strategically offloaded 100 ETH when the price hovered near $4,000. Data from Arkham Intelligence highlights that the Foundation has executed 32 ETH sales over the past year, strategically capitalizing on market peaks.
Spot Ethereum ETFs and Bearish Sentiment
Ethereum’s spot ETFs also witnessed $60 million in outflows, with Grayscale’s ETHE accounting for $58 million. Despite recent inflows, this reversal has further dampened market confidence.
Outlook: Will ETH Test $2,800?
Market analysts remain bearish, forecasting ETH’s potential drop to $2,800. Analyst Caleb Franzen predicts this level could serve as a re-accumulation point, noting an inverse head-and-shoulders pattern indicating a downward trajectory.
However, not all is bleak. Ethereum options data from Deribit reflects a bullish tilt, with a Put/Call ratio of 0.5 and a max pain price of $3,750. This suggests a critical level of interest for traders and potential recovery momentum.
As of writing, ETH is trading at $3,264, with its market cap falling below $400 billion. Liquidation data from Coinglass reports $226 million wiped out in the last 24 hours, predominantly from long positions.
Also Read: Ethereum Faces Third Rejection at $4,000, Will ETH Break Through or Stay Below Key Resistance?
While ETH struggles to regain footing, bulls remain optimistic that crossing $4,100 could spark a rapid surge to new all-time highs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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