Ethereum Price Plummets as Whales Continue Massive Sell-Offs

Ethereum price has dropped nearly 3% in the past 24 hours, driven by large-scale sell-offs from whales moving significant amounts of ETH to exchanges. This bearish trend is causing concern among traders.

Ethereum (ETH) has experienced a significant price decline over the past 24 hours, dropping nearly 3% and currently trading at $2,447.52. This sharp downturn is largely attributed to a massive sell-off by whales, with substantial amounts of Ethereum being transferred to the Binance exchange.

One of the most notable transactions involved a transfer of 90,000 ETH, valued at approximately $226 million, to Binance within a single day. Prior to this, a wallet believed to belong to the ARB Foundation deposited another 60,000 ETH, worth around $150 million. These large-scale transactions have sparked concerns about continued selling pressure from major investors and traders.

Adding to the unease, Ethereum’s co-founder Vitalik Buterin also recently sold off some of his ETH holdings, further intensifying the bearish sentiment in the market.

Technical Analysis: Bearish Sentiment Prevails

A technical analysis of Ethereum’s price action reveals a bearish trend, characterized by a descending trendline from recent highs. This trendline has proven to be a significant resistance level, with several unsuccessful attempts to break through it, indicating persistent selling pressure.

Currently, Ethereum is trading around a minor support level at $2,470, but repeated attempts by bears to break this support suggest that the downside pressure remains strong. If Ethereum fails to hold above these support levels, further sell-offs are likely, potentially pushing the price even lower.

The Relative Strength Index (RSI) for Ethereum is at 37.97, hovering near the oversold territory. Typically, an RSI below 30 indicates an oversold asset, while an RSI above 70 signals an overbought condition. The current RSI level suggests strong selling pressure but also hints at a potential recovery or short-term consolidation if the selling pressure eases.

The recent influx of large deposits has resulted in increased market volatility. According to CoinMarketCap, Ethereum’s market capitalization has dropped by nearly 3% to $294.45 billion, while the 24-hour trading volume has decreased by 27.42% to $8.77 billion. This data indicates that traders are exercising caution, bracing for potential further declines in Ethereum’s value.

What’s Next for Ethereum?

The large-scale sell-offs have led to heightened instability in the Ethereum market. With market capitalization declining by about 3%, and trading volumes significantly reduced, traders are cautious about the future trajectory of Ethereum’s price.

Analysts are concerned about a potential supply shock for Ethereum, especially as ETF inflows have slowed, contributing to price volatility. If the supply of Ethereum decreases significantly due to these sell-offs or as assets are moved from exchanges to cold wallets, it could potentially lead to a price increase in the longer term. However, the immediate outlook remains uncertain, with traders closely monitoring the situation for any signs of recovery or further decline.

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