Is ETH about to hit the bottom?
Ethereum ($ETH) has been experiencing wild fluctuations lately, with prices plummeting, falling below $3200, dropping more than 13% in just 24 hours, and global investors are keeping a close eye on it. Everyone is pondering: Is ETH close to the bottom, or does it have further to fall?
Let's take a look at what caused this massive drop and what might happen with Ethereum next.
Why did Ethereum drop so sharply?
Not long ago, ETH was hovering around $4000, but once it broke below the support level of $3500, it started to plummet. Analysts say that $2800 could be the next support point. But what's the reason behind this?
It seems that those large whales (who can shake the market with a few big trades) got scared and started to sell off their ETH.
Whales panic selling
One whale deposited 22,746 ETH with Binance to pay off debts and sold 31,968 ETH in the past couple of days.
Another whale transferred 49,910 ETH to Binance in just 8 hours and cashed out over $100 million in stablecoins.
These large sell-offs have disrupted the price of ETH, causing panic in the market, as everyone fears that ETH might drop further.
Is the Ethereum Foundation also joining the fray?
Not only the whales, but the Ethereum Foundation has also started selling ETH at this time. They usually sell ETH when prices are high to fund development, and a couple of days ago when ETH was at $4000, they sold 100 ETH. Over the past year, they sold 4,466 ETH, making $12.6 million, mostly during market highs.
Although they are doing this for the long-term development of Ethereum, it undoubtedly puts pressure on the price. With so much ETH flooding the market, how can investors not worry about further declines?
Is ETH at the bottom or does it have further to fall?
With whales selling off and prices breaking below support levels, everyone is asking: Is this it for ETH?
Some analysts say that $2800 could be a strong support, but others warn that if whales continue to sell, prices will drop further. Is ETH about to hit new lows, or will it bounce back?
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