Ethereum (ETH) has seen a turbulent 24 hours, with major whale activity and a price drop of over 2%. Blockchain analytics firm LookOnChain reported that three wallets, likely linked to the same whale, offloaded 10,070 ETH for $33 million in DAI, resulting in a $1 million loss. These sell-offs highlight the current challenges Ethereum faces in maintaining price stability.
Key Developments in the Ethereum Market
Over the past three weeks, this whale reportedly withdrew 24,029 ETH from Binance and now holds 13,959 ETH across multiple wallets. Amid this activity, ETH has struggled to stay above critical support levels, currently hovering around $3,170. On-chain metrics indicate significant selling pressure, with a 791% surge in net exchange inflows, totaling $338 million, as investors move ETH to exchanges for potential liquidation.
Technical indicators like the Moving Average Convergence Divergence (MACD) show a bearish “Sell” signal, and Ethereum remains in a consolidation phase between $3,100 and $3,500. Analysts suggest a breakout from this range could dictate the next trend, but the current market sentiment leans bearish.
Outlook for Ethereum
Despite bearish pressure, Ethereum’s $3,100 support level remains a critical zone. A breach could trigger further declines toward the 0.618 Fibonacci retracement level at $2,891, according to Elliott Wave analysis. Conversely, breaking above $3,500 might ignite a rally, offering bulls an opportunity to regain control.
Funding rates, which measure the cost of holding long positions, have declined, reflecting negative sentiment. However, signs of recovery near the $3,000 support zone could indicate renewed buying interest, potentially paving the way for a rebound.
Buy, Sell, or Hold?
For investors, the situation presents uncertainty. Short-term sentiment appears bearish, but the $3,100 support level and improving funding rates could suggest a buying opportunity for those with a high-risk tolerance. On the other hand, caution is warranted, as a break below $3,000 could lead to deeper losses.
This article is for informational purposes only and does not constitute investment advice.
