The crypto market has been rocked by a significant downturn, with Ethereum($ETH ) making headlines after dropping below $3,200, marking a staggering 13% loss within just 24 hours. This sharp decline has left many traders and investors on edge. Whatโ€™s causing this steep fall? The culprit seems to be a series of large-scale sell-offs, driven by Ethereum whales and even the Ethereum Foundation itself, which has created intense downward pressure on the asset. Letโ€™s explore the details behind this price drop.

Not long ago, Ethereum was trading close to the $4,000 mark, but after breaking the critical $3,500 support level, the price quickly plummeted. Analysts are now looking at the $2,800 support level as the next key threshold. This sharp downturn has been fueled by heavy selling from large Ethereum holders, often referred to as "whales." According to on-chain data from Lookonchain, some major transactions have raised eyebrows:

Whale 1 deposited 22,746 $ETH ($77.7 million) to Binance to settle debts, and in the past two days, offloaded 31,968 ETH ($122.3 million).

Whale 2 transferred 49,910 ETH ($170 million) to Binance in just 8 hours and cashed out $137.8 million worth of stablecoins.

The result of these large transactions has been significant selling pressure, sparking panic in the market. The Ethereum Foundation, known for its strategic sales during market peaks, also added fuel to the fire. Just two days ago, when Ethereum was near $4,000, the Foundation sold 100 ETH. Over the past year, they have offloaded 4,466 ETH ($12.6 million) in 15 separate transactions, most of which took place when prices were at their highest. While some may view this as troubling, the Foundationโ€™s strategy is to sell during favorable conditions to fund its development projects.

So, whatโ€™s next for Ethereum? With whales continuing to move large amounts and key support levels breaking, many are eyeing $2,800 as the next critical support level. If Ethereum can stabilize at this point, it could serve as a base for a recovery. However, if the heavy selling continues, further drops could be in store. For those holding Ethereum, this volatility can be unsettling, but long-term investors often view these dips as potential buying opportunities. In the world of crypto, patience is keyโ€”what may seem like a rough patch today could turn into a profitable move tomorrow.

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