Ethereum Price Drops Over 3.5% Amid Market Decline
The cryptocurrency market experienced another downturn as Ethereum (ETH), the native token of the Ethereum blockchain, saw a 3.5% drop during Friday’s U.S. trading session, slipping just above the $2,000 mark. This movement follows a broader bearish trend in the market, leaving investors questioning Ethereum’s future price trajectory.
The Role of Mid-Size Whales in Ethereum’s Price Decline
On-chain data reveals that mid-size whales, accounts holding between 1,000 and 10,000 ETH, have significantly impacted Ethereum’s price in recent weeks. Historically, these wallets contributed heavily to selling pressure near Ethereum’s all-time high (ATH) price of $4,955. Recent data indicates these groups have continued their sell-off, reducing their holdings by 4-6% of the total supply since the market peak. This persistent distribution trend adds significant downward pressure, despite attempts at price stabilization above $4,000.
In contrast, larger whales managing over 10,000 ETH have shown more conservative behavior, with minimal selling activity. This apparent wait-and-see strategy further emphasizes the active role of mid-size holders in shaping Ethereum’s short-term price movements. Small holders, with balances below 1,000 ETH, exhibit mixed behaviors, contributing less to the overall market sentiment.
Ethereum Technical Analysis: Bearish Signals Persist
Ethereum’s price chart displays troubling signs for bullish investors. Over the last two days, ETH has fallen from $3,240 to $3,022, signaling a 4.74% drop. This decline forms a bearish evening star pattern against the resistance line of a falling wedge pattern—a technical setup indicating continuation of the current downtrend.
Furthermore, the 20-day exponential moving average (EMA) has become a significant resistance level, reflecting sellers’ strengthened position. If the bears maintain momentum, Ethereum could drop by an additional 29% to test the wedge pattern’s lower support near $2,115.
Possible Recovery Scenarios
Bulls still have potential recovery routes if they manage to reclaim the overhead resistance as support. A break above key levels could rejuvenate Ethereum’s bullish momentum, targeting resistances at $3,466 and possibly $4,250. Notably, for long-term investors interested in capitalizing on dips, this might be an opportunity to accumulate ETH while prices are subdued.
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Conclusion
Ethereum’s current price action underscores the influence of mid-size whales and the challenges of bearish market conditions. However, with potential support levels at $2,115 and optimistic recovery targets, ETH remains a vital asset with long-term value. Whether you’re an active trader or a long-term investor, staying informed and cautious will be key in navigating the crypto market’s volatility.
