The cryptocurrency market is turbulent, with Ethereum ($ETH) price dropping below $3200, making headlines. It has fallen more than 13% in the last 24 hours, astonishing many investors. So, what is the reason behind this sudden drop? It turns out that large-scale Ethereum whales, including the Ethereum Foundation, are selling off, causing immense selling pressure. Let's analyze this carefully.
What happened to Ethereum?
Not long ago, Ethereum was hovering around $4000. However, once the critical support level of $3500 was broken, the price quickly fell. Now, analysts believe the next support level is around $2800.
This drop is not just random market fluctuations. Those large Ethereum holders, known as 'whales,' are selling their holdings at an astonishing rate. According to on-chain analysis platform Lookonchain:
Whale 1: Deposited 22,746 Ethereum ($77.7 million) to Binance to pay off debt. In the last two days, this whale has sold another 31,968 Ethereum ($122.3 million).
Whale 2: Transferred an astonishing 49,910 Ethereum ($170 million) to Binance in the last 8 hours and withdrew stablecoins worth $137.8 million.
These massive sell-offs have put great pressure on Ethereum's price, triggering market panic. More dramatically, the Ethereum Foundation has also joined the selling ranks.
Strategic sell-off by the Ethereum Foundation
The Ethereum Foundation is known for strategically selling at market peaks, and this time is no exception. Just two days ago, when Ethereum was at $4000, they sold 100 Ethereum. Over the past year, the Foundation has sold 4466 Ethereum (worth $12.6 million) through 15 transactions, most of which were sold at peak prices. Their timing is truly impeccable!
Although this seems concerning, the Foundation's strategy is simple: sell high when prices are favorable to fund development and operations.
What will happen to Ethereum next?
As whales sell such a large amount of Ethereum, the support level has also been breached, naturally making the market feel tense. Analysts are closely monitoring the key support level of $2800. If Ethereum can stabilize here, it may lay the foundation for a rebound. But if the whales continue to sell, further declines may be imminent.
Should you be worried?
If you are an Ethereum holder, this volatility may make you feel uneasy. But remember, this is not the first time Ethereum has fallen, and it is unlikely to be the last. Long-term holders often see these moments as buying opportunities, while traders are prepared to deal with more short-term fluctuations.
Stay calm, keep informed, and always remember that the cryptocurrency market is cyclical. What seems like a storm today may be a new opportunity tomorrow.
What do you think about Ethereum's recent trend? Share your thoughts!
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