The Ethereum price crash risk is under intense scrutiny as a surge of 110,000 ETH flows to exchanges, potentially signaling heightened selling pressure. With Ethereum (ETH) trading at $3,358, analysts warn of a possible plunge to $2,600 if bearish trends persist. As whale profit-taking gains momentum, understanding Ethereum’s technical and on-chain signals is critical for navigating these volatile conditions.
Why Ethereum Faces a $2,600 Risk
Bearish Signals from Exchange Inflows
Ethereum has seen a sharp increase in exchange-held ETH, with 110,000 tokens recently moved to centralized platforms. Historically, such spikes indicate increased selling activity, as investors book profits or prepare collateral during uncertain times. When ETH supply on exchanges rises, prices often face downward pressure.
Key Levels to Watch
Ethereum’s current price sits between critical hurdles: resistance at $3,613 and support at $3,029. A breakout above $3,613 could trigger a bullish rally, while a breach below $3,029 might lead to a steep correction, potentially driving prices to $2,600.
Profit-Taking Activity Heightens Concerns
Whales Cash In
Recent data shows significant profit-taking by Ethereum whales, with spikes in the Network Realized Profit/Loss (NPL) indicator. Positive NPL spikes after a price drop suggest holders lack confidence in a recovery, intensifying bearish sentiment.
This trend aligns with December 23 and 26 data, which revealed large-scale sell-offs following Ethereum’s decline from its yearly high of $4,107. If selling persists, the ETH price correction could deepen.
Implications for Investors
For long-term holders, capitulation events—marked by negative NPL spikes—often signal buying opportunities. However, the current scenario suggests cautious optimism, as market participants await clearer signs of a rebound.
What’s Next for Ethereum?
If Ethereum sustains above $3,029, it could stabilize and potentially target a recovery. However, a breach below this level may confirm the bearish trajectory to $2,600. To stay updated on these developments, visit CryptoTalk for the latest Ethereum price analysis and market insights.
