Ethereum (ETH) continues to face intense selling pressure, with its price crashing below $2,000 earlier today. This sharp decline has opened the doors for a potential 75% correction, potentially bringing ETH down to $1,250. Over the past week, Ethereum has plummeted more than 16%, extending its year-to-date losses to over 37%, reinforcing a strong bearish sentiment in the market.
Ethereum ETF Outflows Surge Amid Price Drop
Adding to Ethereum’s woes, institutional interest appears to be waning, as evidenced by a surge in outflows from Ethereum spot ETFs. Over the past week, these ETFs recorded more than $120 million in outflows, signaling a retreat by institutional investors. This decline in demand from big players has further weighed down ETH’s price trajectory.
Market Liquidations and Open Interest Decline
Ethereum’s price drop aligns with a broader market correction, with crypto liquidations surpassing $600 million, according to Coinglass data. Ethereum-specific liquidations have been particularly severe, with over $230 million in long positions liquidated in the past 24 hours alone. This mass liquidation has contributed to ETH’s volatility, flushing out overleveraged traders. Additionally, ETH’s open interest has fallen by 2.67% to $19 billion, reflecting a bearish sentiment among futures traders.
Can Ethereum Recover? Whales Show Confidence
Despite the ongoing bearish trend, some market analysts remain optimistic about Ethereum’s recovery. Crypto analyst Ali Martinez highlighted that Ethereum’s largest whales have accumulated 330,000 ETH in the past 48 hours. Such accumulation suggests that major investors are taking advantage of the price dip, potentially setting the stage for a rebound.
Furthermore, over 600,000 ETH have been withdrawn from exchanges in the last week. This movement signals a shift toward long-term holding, reducing the immediate selling pressure on the market.
For Ethereum to regain bullish momentum, it must reclaim the $2,460 resistance level. This price point is crucial, as approximately 10.95 million investors hold ETH at this level. Breaking past this resistance could trigger a rally and reverse the ongoing downtrend.
Also Read: Ethereum Developers to Restore Holesky Testnet Despite Pectra Hiccups, Keeping Upgrade on Track
Crypto trader Crypto Patel remains bullish, stating, “Buying $ETH on every dip for $10k/ETH.” His strategy reflects confidence in Ethereum’s long-term potential, viewing current price declines as an opportunity for accumulation.
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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