Ethereum’s Wild Ride: Is It Time to Hold Your Breath or Your Wallet? 🤔💸

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Well now, gather ’round, folks! In this grand circus of macroeconomic uncertainty, brought to you by the tariff trade wars, our dear Ethereum (ETH) has taken quite the tumble. This large-cap altcoin, boasting a fully diluted valuation of about $225 billion—yes, you heard that right!—has seen its price plummet over 56 percent since the merry month of December, now trading at a paltry $1,869 as of April 2. Ain’t that a sight for sore eyes? 🥴

Ethereum Network Suffers Low Demand

Now, let me tell you, the demand for Ether has been as scarce as hen’s teeth, especially among those institutional investors who seem to have lost their appetite. Just take a gander at the U.S. spot Ether ETF, which has recorded a net cash outflow of about $403 million. That’s a whole heap of money walking out the door! 💰

According to the wise folks at Santiment, those Ether whales—those big fish with account balances between 100k and 1 million—have sold off around 760 ETH in the last fortnight, leaving them with a mere 18.81 million coins. Oh, the humanity! 🐋

Meanwhile, the Ethereum network has seen whale activity drop like a rock, down 63 percent since February 25. It seems our aquatic friends have taken a vacation! 🐳

Since Feb 25, the number of large #Ethereum $ETH transactions has declined by 63.8%, signaling a drop in whale activity on the network.

— Ali (@ali_charts) April 2, 2025

What Next?

Now, after consistently closing below the 200-week Simple Moving Average (SMA)—a fancy term for a line that tells us when to panic—Ethereum’s price is feeling the weight of heightened bearish sentiment. From a technical analysis standpoint, the ETH/USD price has been poking and prodding a crucial support level above $1,800 for the past four weeks. Will it yield a renewed bullish sentiment? Only time will tell! ⏳


However, if it keeps closing below that final rising weekly logarithmic trend, we might as well start writing the eulogy for the entire altcoin market. With the weekly Relative Strength Index (RSI) hanging around oversold levels, the chance of a V-shaped reversal is as likely as finding a needle in a haystack. 🤷‍♂️

But fear not, dear reader! The crypto market is expected to pick up its socks and perform better in the second quarter of 2025 after a rather dismal first quarter. So, keep your eyes peeled and your wallets ready! 🤑

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2025-04-02 11:52