Ethereum Well Drops $256 Million ETH Price, Sign of Crash?
The recent actions of the Ethereum (ETH) whale have garnered a lot of attention from crypto enthusiasts, dumping an estimated quarter of a billion ETH in the past 24 hours. This significant dump has raised questions among investors and traders, is the market going to crash or what, why are whales and institutions dumping their ETH holdings?
Well sent $257M in ETH exchanges.
According to on-chain analytics firm CryptoQuant, Ethereum whales dumped nearly $256.8 million worth of 107,000 ETH into the cryptocurrency exchange over the past 24 hours. This is a negative sign for the market, the more currency reserves increase, the more it creates selling pressure, leading to a sharp drop in prices.
However, these significant losses occurred on October 5, 2024, when the overall market started to recover. Following this dump, ETH did not experience any major price drop.
Ether's current price momentum
At press time, it was trading around $2,406, down more than 0.75 percent in the last 24 hours. Meanwhile, trading volume fell by 46 percent, indicating low participation by traders and investors, possibly due to fears of a price cut or market crash.
Ethereum technical analysis and upcoming levels
According to expert technical analysis, Ether is currently facing strong resistance near the $2,445 level. Following Iran's strike on Israel, the recent price surge has caused ETH to test the rising trendline support. However, ETH itself is above the trend line and above the $2,335 level, it is very important to prevent a price decline.
Based on the historical price progress, if ETH breaks the trend and closes a daily candle below $2,335, there is a high possibility that it will experience further price declines to $2,200 in the coming days.
So far, ETH has been trading below the 200 exponential moving average (EMA) on a daily time frame, indicating a bearish trend. 200 EMA is a technical indicator used to analyze, whether the asset is going up or down, and traders and investors make decisions based on that analysis.
