As a seasoned researcher with years of experience in the cryptocurrency market, I have seen my fair share of bull runs and bear markets. The current correction in Ethereum is causing a stir, with its price dropping another 7% on the weekly charts and trading much closer to the crucial support of $2,300.
With Bitcoin‘s decline persisting, Ethereum, the world’s second-largest cryptocurrency, is experiencing a more pronounced downturn, dropping approximately 7% on its weekly charts. Currently, Ethereum’s price is approaching a significant support level at around $2,300. Furthermore, large Ethereum holders (ETH whales) have been offloading their ETH holdings this week.
Ethereum Price Drop Under $2,300 Can Trigger 30% Crash
As a researcher, I’ve been closely observing the Ethereum market, and recent insights from analyst Ali Martinez are particularly noteworthy. He highlights that the collective purchase of approximately 52.65 million ETH by around 2.77 million addresses has established $2,300 as a significant support level.
If Ethereum manages to stay above $2,300, it could potentially ignite a fresh surge that might drive its value up to $6,000, according to Martinez’s observation. This critical point for Ethereum price could significantly influence its future trend. Currently, ETH is trading at around $2,432, representing a 1.2% decrease, with a market cap of similar level.
In contrast, after the Dencun update, fees on the Ethereum mainnet reached an all-time low due to increased activity on Layer 2 networks. This means that less ETH is being destroyed through transaction fees, making it inflationary again and potentially causing its price to soar towards $3,000. However, the ongoing selling by Ethereum whales has been affecting market sentiment negatively as of late.
ETH Whale Selloff Continues
According to the latest figures from Spotonchain, a significant Ethereum holder from the Initial Coin Offering (ICO) period, who originally obtained 150,000 ETH during the Ethereum ICO, has added more funds to Kraken. Notably, this whale recently moved approximately 5,000 ETH, valued at around $12.2 million, to the exchange just four hours ago.
The data indicates that over the last fortnight, a major Ethereum holder has transferred approximately 45,000 ETH (equivalent to about $113.3 million) to Kraken, with an average price of roughly $2,517 per ETH. Despite these substantial transfers, this whale still maintains around 94,450 ETH, which is worth approximately $230 million. This persistent selling by the Ethereum whale suggests a significant movement of assets.
Four hours back, the Ethereum heavyweight, who previously obtained 150,000 ETH during the ICO, transferred an additional 5,000 ETH (equivalent to approximately $12.2 million) to the Kraken exchange.
Over the last fortnight, this whale has transferred a total of approximately 45,000 ETH (equivalent to around 113.3 million dollars) to Kraken, with an average price per ETH of about $2,517. At present, it holds roughly 94,450 ETH (around 230 million dollars) in its account on Kraken.
— Spot On Chain (@spotonchain) October 8, 2024
With a less favorable outlook on Ethereum, investors are shifting their resources towards Ethereum alternatives such as Sui, Solana, and Avalanche, given the present market scenario.
Conversely, inflows into Ethereum Exchange-Traded Funds (ETFs) have nearly come to a halt. Specifically, on Monday, October 7, not a single Ethereum spot ETF received any new investments.
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2024-10-08 07:44