Ethereum Crash: Whale Liquidation Triggers ETH Plunge, Dropping Below $3,000 May Become a Reality!

In the past 24 hours, the price of Ethereum (ETH) has plummeted by over 11%, breaking through key support levels and falling below $3,300. As ETH dropped below $3,500, bearish sentiment in the market intensified, with analysts predicting the next support level could reach $2,800.

Whale Liquidation Triggers Market Panic

Against the backdrop of a generally sluggish crypto market, the sharp decline of ETH is closely related to the massive sell-off by Ethereum whales. According to data from blockchain analysis platform Lookonchain, a whale recently transferred 22,746 ETH (worth about $77.7 million) to Binance and converted the funds into stablecoins to repay debts on the Aave and Spark platforms. In just the past two days, this whale transferred a total of 31,968 ETH, valued at approximately $122 million.

Another whale transferred 49,910 ETH in the past 8 hours, valued at up to $170 million, and also made significant stablecoin withdrawals. The whale liquidation activities have made market sentiment more pessimistic, further exacerbating the price decline of ETH.

Ethereum Foundation is Also Selling

Not only are whales selling ETH, but the Ethereum Foundation is also strategically liquidating at high levels. Just as the price of ETH approached $4,000, the foundation sold 100 ETH, indicating its risk control at market peaks. According to data from Arkham Intelligence, over the past year, the foundation has executed 32 transactions, selling a total of 4,466 ETH, valued at approximately $12.6 million.

ETF Outflows Intensify Market Sell Pressure

Additionally, recent outflows from Ethereum spot ETFs have also put pressure on the market. Grayscale's ETHE fund saw an outflow of $60 million on Thursday, with $58 million of that coming from Grayscale ETHE, further amplifying the negative sentiment in the market.

In summary, factors such as whale liquidation, foundation selling, and ETF outflows have collectively driven the price of ETH down, making the $3,000 threshold no longer distant. The market's turbulence has forced investors to remain vigilant about the risks of further declines.

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