Ethereum prices have increased by 1.07% in the past 24 hours and are trading at $2,453 with a market capitalization of $292.9 billion.

Concerns about whales selling ETH caused the price to fall yesterday after one whale sold 45,000 ETH worth $113.3 million in 15 days, leaving the whale holding 94,450 ETH worth $230 million. Ethereum’s fundamentals continue to make the $2,400 support level key as the EIP-7781 upgrade is in place.

ETH whales continue to sell amid market uncertainty

Unable to avoid double-digit losses against the dollar, Ethereum was hit hard again by a large ETH whale who sold assets in large quantities. The whale has been funding the Kraken exchange over the past 15 days, moving 45,000 ETH, equivalent to $113.3 million. The average price of these transactions was $2,517 per ETH.

In addition to these massive transfers on the whale’s balance sheet, whales also own 94,450 ETH worth approximately $230 million.

This selling activity, along with the uncertainty surrounding Ethereum’s price, has dampened market sentiment somewhat, with traders remaining cautious.

EIP-7781 strengthens Ethereum fundamentals

EIP-7781, proposed by developer Ben Adams, reduces block time from 12 seconds to 8 seconds, reducing transaction confirmations by 33%.

Additionally, the proposal increases the network’s data capacity by 50% to allow for more transactions at a lower cost as Ethereum pursues rollups-centric scalability.

Some key Ethereum figures such as researcher Justin Drake have been pushing for EIP-7781, which would make decentralized exchanges like Uniswap 1.22 times more efficient, saving $100 million in arbitrage costs per year.

By improving transaction execution, more users will join the Ethereum network and put more upward pressure on the ETH price.

Ethereum faces critical support at $2,400

Ethereum (ETH) price is at a critical level of $2,400, which brings a pivotal point for the world’s second-largest cryptocurrency by market cap. If this level is breached, the coin could see a 16% rally, which could push the price to $2,800.

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However, if Ethereum fails to break through this level, the price could drop by 8% all the way to $2,200, forming a double bottom pattern.

This is crucial because 2.77 million wallets bought 52.65 million ETH as the price of Ethereum rose to $2,400. Therefore, the $2,400 level is a key battleground between bulls and bears, and a break below this level could trigger more market declines.

Ethereum’s future remains uncertain

ETH whales are selling and price action is weak, which means Ethereum’s near-term prospects are questionable. Since ETH was in deflation 4 months ago due to the Dencun upgrade that slashed mainnet fees, it has returned to inflation. Therefore, the price of Ethereum may continue to fall or struggle to break through key resistance levels.

Looking ahead, as Ethereum is facing all this resistance, everyone is watching to see if the $2,400 support level holds, which will determine where Ethereum moves in the coming days.