📉 Ethereum (ETH) Crashes to $2,800: Did ETF Spark Bloodbath?
After falling to $3,000, Ethereum has experienced a severe decline. Institutional investors selling off their ETH holdings appear to be the main reason behind this sharp decline. Ethereum's price has dropped sharply as a result of the sell-off.
The daily ETH/USD chart reveals a severe sell-off pattern. A number of significant support levels have been breached by the asset, including the 200 EMA, which usually serves as a solid floor during downturns. The price is continuously dropping below these important indicators, which also show a bearish trend: the 50 EMA and the 100 EMA.
An important liquidation appears to be the cause of the sell-off as shown by the spike in ETH trading volume. According to the RSI, which has dropped to about 31, Ethereum is oversold. This does not however imply that a swift recovery is approaching, particularly in light of the mood of the market right now.
ETF holdings sold by institutional investors are probably the cause of Ethereum's sharp price decline. Exchange-traded funds or ETFs have gained popularity as a means of institutional cryptocurrency investment. But as the current price action shows, these investors' large-scale sales have the potential to seriously disrupt the market. Market prices are significantly influenced by institutional investors, who generally handle substantial sums of money.
A domino effect frequently occurs when these entities begin liquidating their holdings, aggravating the price decline as additional investors follow suit. According to the most recent price action, if the sell-off persists, Ethereum may be subject to additional downside pressure.
We might witness a lengthy period of bearish activity if Ethereum is unable to recover this level. Conversely, the RSI's indication of oversold conditions may draw in some buyers searching for a good deal.
