The cryptocurrency market has faced significant turbulence, with Ethereum ($ETH) grabbing attention after dropping below $3,200—a sharp 13% decline in just 24 hours. This sudden crash has left many investors reeling. But what’s driving the downturn? Large-scale selloffs by Ethereum whales and even the Ethereum Foundation have contributed to immense selling pressure. Here’s a closer look at what’s happening.
What Triggered Ethereum’s Plunge?
Not long ago, Ethereum was trading comfortably near $4,000. However, the critical $3,500 support level was breached, leading to a rapid decline. Analysts now suggest the next major support lies around $2,800.
This isn’t a case of random market movements. Whales, or large-scale Ethereum holders, have been offloading significant amounts of ETH. On-chain analysis by Lookonchain revealed some startling activity:
Whale 1: Deposited 22,746 ETH (worth $77.7 million) into Binance to settle debts and has sold a total of 31,968 ETH ($122.3 million) over the past two days.
Whale 2: Transferred 49,910 ETH ($170 million) to Binance within eight hours, converting $137.8 million into stablecoins.
These massive sales have intensified selling pressure, sparking panic in the market. To add to the drama, the Ethereum Foundation also stepped in with strategic sales.
The Ethereum Foundation’s Sales Strategy 📉
Known for timing its sales during market peaks, the Ethereum Foundation contributed to the sell-off. Just two days ago, when Ethereum was trading at $4,000, the Foundation sold 100 ETH. Over the past year, they have sold 4,466 ETH ($12.6 million) across 15 transactions, many of which occurred at market highs—a calculated move to fund development and operations.
What’s Next for Ethereum?
With whale activity dominating and key support levels breaking, market uncertainty is high. Analysts are closely watching the $2,800 level as the next critical support point. A stabilization at this level could signal a recovery, but continued whale sell-offs might push prices even lower.
Should You Be Concerned?
For Ethereum holders, this volatility can feel unnerving. However, it’s worth noting that Ethereum has weathered similar declines before. Long-term investors often see such dips as opportunities to accumulate, while short-term traders brace for more turbulence.
Remember, the crypto market moves in cycles. While today’s decline might seem dire, it could pave the way for future opportunities. Stay informed, keep a clear strategy, and maintain a long-term perspective.