The crypto market has taken a hit, with Ethereum ($ETH) plunging over 13% in just 24 hours, breaking below $3,200. Investors are left wondering: what’s causing this sudden drop? The answer seems to lie with large-scale selling by Ethereum whales and even the Ethereum Foundation, creating intense selling pressure. Let’s dive into the details.
What’s Happening with Ethereum?
Ethereum recently hovered near $4,000 but has since fallen sharply after breaking the $3,500 support level. Analysts now point to $2,800 as the next key support.
This isn’t just random market behavior. Large Ethereum holders—commonly known as whales—have been offloading their assets at an extraordinary pace. On-chain data from Lookonchain highlights the following:
Whale 1: Sent 22,746 ETH (worth $77.7 million) to Binance to repay debts and has sold a total of 31,968 ETH ($122.3 million) in two days.
Whale 2: Recently transferred 49,910 ETH ($170 million) to Binance and converted $137.8 million into stablecoins.
These massive transactions have amplified the downward pressure, sparking market-wide panic.
The Ethereum Foundation’s Role
Adding to the selling pressure, the Ethereum Foundation, known for timing sales during market highs, has also been active. Just two days ago, with ETH trading at $4,000, the Foundation sold 100 ETH. Over the past year, they’ve sold 4,466 ETH ($12.6 million) across 15 transactions, typically capitalizing on peak prices. Their strategy aims to fund development while the market is favorable, but it adds to the current bearish sentiment.
What’s Next for Ethereum?
With whales continuing to sell and key support levels breaking, the market is understandably nervous. Analysts are watching the $2,800 support level closely, as it could serve as a base for recovery. However, if whale activity persists, deeper declines may follow.
What Should Investors Do?
For Ethereum holders, this level of volatility can be unnerving. However, seasoned investors know that such dips are common in crypto cycles. While traders brace for further short-term turbulence, long-term holders often view these moments as potential buying opportunities.
Stay informed, keep a cool head, and remember that crypto markets are cyclical. Today’s uncertainty could pave the way for tomorrow’s gains.
