Ethereum (ETH) has faced a sharp decline of over 11% in just 24 hours, falling beneath the $3,300 mark. This drastic drop has been largely driven by significant sell-offs from major holders and the Ethereum Foundation, with experts projecting the next support level to be around $2,800.
What Caused the Price Drop?
The steep decline in Ethereum’s value coincided with aggressive selling from large investors. Recent reports from blockchain analysis firm Lookonchain highlighted that one major holder transferred 31,968 ETH, valued at approximately $122.3 million, to Binance over two days. Furthermore, this entity added another 22,746 ETH, worth around $77.7 million, to clear debts.
Where Is Ethereum Heading Next?
Market sentiment suggests that the potential support level for Ethereum may rest at about $2,800. Caleb Franzen, a market analyst, pointed out that ETH could establish a new low around $3,000, stating, “We are currently navigating within an inverted skull formation, likely leading to a significant support test.” In contrast, bullish analysts argue for a brighter future, indicating that if Ethereum surpasses $4,100, it could set new all-time highs.
- Ethereum’s price is currently at $3,264.
- Market capitalization has dipped below $400 billion.
- 173,000 ETH options, valued at $590 million, have expired, indicating bullish market sentiment.
With Ethereum’s current price stabilization efforts, market participants remain vigilant, closely monitoring critical price points to gauge future movements.