🚨 Market Update: Ethereum Takes a 20% Plunge 🚨
Ethereum (ETH) has faced a sharp selloff, dropping 20% from its Monday peak of $4,100 to approximately $3,260.
🔍 Key Factors Behind the Drop
The Federal Reserve's hawkish stance on interest rates has tightened liquidity, weighing on risk assets like crypto. Large Ethereum holders moved millions of ETH to exchanges, triggering significant sell-offs. One whale moved 31,968 ETH ($122.3M) to Binance in two days, while another deposited 49,910 ETH ($170M) and converted it to stablecoins. The futures market also signals bearish sentiment, with open interest falling from $28.70B on Dec 17 and the long/short ratio dropping to 0.9.
🌍 Broader Market Impact
Ethereum's plunge reflects broader market jitters. Bitcoin (BTC) has also fallen but fared slightly better, declining ~12% from its peak. Risk-off sentiment is spreading across the crypto space.
📊 What's Next?
This market turbulence presents both risks and opportunities. Keep an eye on key support levels for ETH, macro updates, and whale activity.
💬 What’s your take on Ethereum’s sharp decline? Share your thoughts and strategies below!
