The crypto market has been shaken up, with Ethereum ($ETH ) making headlines as it plunged below $3,200. This drop—more than 13% in just 24 hours—has left many investors stunned. So, what’s behind this sudden decline? It seems that large-scale sales by Ethereum whales and even the Ethereum Foundation have created massive selling pressure. Let’s break it all down.
What Happened to Ethereum? 💔
Ethereum was cruising along near $4,000 not long ago. But with the critical $3,500 support level breaking, the price tumbled quickly. Analysts now believe the next support level is around $2,800.
This nosedive wasn’t just random market movement. Large Ethereum holders, often referred to as "whales," have been offloading their holdings at a staggering pace. The on-chain analysis platform Lookonchain reported some eyebrow-raising moves:
Whale 1: Deposited 22,746 ETH ($77.7 million) into Binance to pay off debts. Over the past two days, this same whale has sold 31,968 ETH ($122.3 million).Whale 2: Transferred a jaw-dropping 49,910 ETH ($170 million) to Binance in the past eight hours and cashed out stablecoins worth $137.8 million.
These huge sales created significant downward pressure on Ethereum’s price, triggering panic across the market. Adding to the drama, the Ethereum Foundation made its own move.
Ethereum Foundation’s Strategic Sales 📉
The Ethereum Foundation, known for strategically selling during market peaks, added to the selling spree. Just two days ago, when Ethereum was at $4,000, they sold 100 ETH. Over the past year, the Foundation has sold 4,466 ETH ($12.6 million) across 15 transactions, most of which were at peak prices. Talk about perfect timing!
While this may seem alarming, the Foundation’s strategy is straightforward: selling at high prices to fund development and operations while prices are favorable.
What’s Next for Ethereum? 🤔
With Ethereum whales moving such large amounts and support levels breaking, it’s natural for the market to feel jittery. Analysts are eyeing the $2,800 level as the next major support. If Ethereum stabilizes there, it could provide a foundation for a recovery. However, if whales continue their selling spree, further dips could be on the horizon.
Should You Be Worried? 😟
If you’re an Ethereum holder, this kind of volatility can be unsettling. But remember, this isn’t Ethereum’s first dip, and it likely won’t be its last. Long-term holders often view these moments as buying opportunities, while traders brace for more short-term action.
Stay calm, stay informed, and always remember that the crypto market moves in cycles. What seems like a storm today could be a new opportunity tomorrow. 🌈
What do you think about Ethereum’s recent moves? Share your thoughts! 👇