Ethereum Whale Activity Sends ETH Price Plunging: Is $2,200 Next?
Ethereum (ETH) Faces Price Pressure Amidst Whale Selling
\n
Ethereum (ETH) has encountered a turbulent week, experiencing a 10.3% drop from last week’s highs following the recent market downturn. This decline has sparked concern among analysts and investors, raising questions about whether ETH is poised for another correction.
\n
Since the October 1st correction, ETH has struggled to reclaim key resistance levels. On Tuesday, the cryptocurrency plummeted from the $2,600 zone to the $2,300 mark, where it has been hovering for the past few days. Adding to the market’s anxiety, news of significant ETH transfers has emerged, fueling bearish sentiment.
\n
Ethereum Whales Dump Millions on Exchanges
\n
On-chain analytics firm Lookonchain revealed that an Ethereum Initial Coin Offering (ICO) participant sold their tokens amid the market slump. The whale deposited 12,010 ETH, worth $31.6 million, to Kraken a week ago after remaining inactive for two years. Just two days later, the same address sold another 19,000 ETH, worth approximately $47.54 million.
\n
Crypto analyst Ali Martinez highlighted that on October 3rd, a staggering $259.2 million worth of ETH was sent to crypto exchanges. CryptoQuant data shared by Martinez indicates that 108,000 ETH were sent to exchanges in the last 24 hours, a significant increase from the previous day.
\n
Will ETH Plunge to $2,200?
\n
The influx of ETH into exchanges has amplified the bearish sentiment within the community. Crypto investor Ted Pillows described ETH as \”one of the most underperforming cryptos in 2024.\” Despite the approval of Ethereum spot ETFs, the cryptocurrency has \”underperformed almost every large cap.\” Pillows noted that ETH’s price movements have been closely tied to Bitcoin, surging alongside it during market uptrends but experiencing much sharper declines during downturns.
\n
However, Pillows remains optimistic about ETH’s long-term potential, emphasizing that every time Ethereum was considered \”dead,\” such as in 2020-2021, it ultimately outperformed Bitcoin. Based on this historical pattern, he believes that ETH could face \”one last flush\” to $2,200 before a significant reversal.
\n
While some analysts anticipate a potential bounce back for ETH, others remain cautious. Trader Crypto General suggests that ETH could retest the $4,000 level by next month, but warns that a break below the current trendline could lead to a drop to the $2,100 level.
\n
Key Resistance Levels to Watch
\n
Other market watchers point to the $2,400 resistance level as a crucial level to watch. Reclaiming this level could trigger a potential bounce toward $2,800, according to analysts. Daan Crypto Trades considers the $2,850 resistance level to be another significant indicator of a potential trend reversal. This zone aligns with the horizontal level that marked the beginning of ETH’s rally to its yearly high of $4,090 in February-March.
\n
As of this writing, ETH has seen a positive price jump, currently trading at $2,431. This represents a 4.3% surge within the daily timeframe.