Ethereum (ETH) price has fallen over 11% in the last 24 hours, dipping below $3,300 amid a significant selloff by Ethereum whale entities and the Ethereum Foundation. The selloff has triggered negative sentiment and heavy liquidations, causing the ETH price to slip under the crucial support level of $3,500. Analysts are now speculating that the next support level for Ethereum could be as low as $2,800.
The selloff began with a massive deposit of 22,746 ETH, worth $77.7 million, by one Ethereum whale to Binance. Over the last two days, the same whale deposited a total of 31,968 ETH into Binance. Another whale transferred 49,910 ETH, valued at $170 million, further exacerbating the selloff. Additionally, the Ethereum Foundation sold 100 ETH, signaling a strategic move to liquidate at the top price before the market correction.
The Ethereum market is also dealing with a significant outflow of funds from spot Ethereum ETFs, with $60 million in outflows reported on Thursday. These combined factors have led to a price drop of over 17.5% from ETH’s earlier price of $4,000, causing concerns about a further decline.
Crypto analysts are now predicting that Ethereum could drop to as low as $2,800 before any potential recovery. A popular crypto analyst, Caleb Franzen, shared an inverse head-and-shoulders pattern for Ethereum, suggesting a downward trajectory towards $3,000, followed by a potential bounce back to the $4,000 range.
Despite these bearish sentiments, some market observers remain hopeful. Ethereum bulls believe that once ETH breaks through the $4,100 mark, it could quickly surge towards new all-time highs. The Ethereum options market also shows a slightly more optimistic view, with a higher volume of bullish call options compared to bearish puts.
As of press time, Ethereum is trading at $3,264, down 11.21%, with a market cap under $400 billion. The ongoing market volatility and whale activity suggest that Ethereum’s price may continue to face pressure in the near future.
