Today, the cryptocurrency market faced a lot of selling, causing the price of Bitcoin to fall sharply below important support levels and head toward a low of $59,000. This drop was triggered by an announcement from Mt. Gox about starting repayments, which led to fears of more selling. At the same time, the price of Ethereum also dropped significantly from its high of $3,500, causing a lot of sell-offs. Also, current on-chain data shows a negative trend for Ethereum, which might stop it from recovering soon.
Ethereum’s Whale Transaction Declines
This week started with a sharp downturn in the crypto market, as the price of BTC fell below $59K. According to data from Coinglass, the market experienced total liquidations exceeding $350 million within the past 24 hours. Particularly, the price of ETH saw liquidations close to $80 million, while long position holders faced liquidations amounting to over $67 million.
Whales, known for their significant influence on asset prices due to their substantial holdings, are showing negative in the ETH market. Notably, addresses with between 100,000 and 1 million ETH have offloaded approximately 700 million ETH in the past two weeks.
This sale, which amounted to about $2.32 billion, has reduced their collective holdings to 20.26 million ETH. Given that whales typically maintain their positions even during bear markets, this large-scale selling is a cause for concern.
Data from IntoTheBlock shows that the large transaction volume for Ethereum declined this week as the metric dropped from the peak of $6.7 billion to a low of $3.4 billion. This weakened the buying volatility for ETH over the week.
Retail investor sales have also risen. Analysis shows about 25% of ETH users are in profit, likely driving transactions to secure these gains. Usually, selling is low when under 25% are profitable, but with this threshold exceeded, investors might be aiming to lock in gains amid potential price drops.
Ether’s uncertainty was resolved with a downward movement, as it broke below the 50-day SMA at $3,420. ETH price tested buyers’ patience around the $3,200 mark; however, bears failed to plunge the price further. This created a rebound opportunity for ETH price. As of writing, ETH price trades at $3,300, declining over 4.7% in the last 24 hours.
The declining 20-day EMA at $3,372 and an RSI near 28 indicate strong bearish control. Sellers will likely try to push the price down to the psychological level of $3,000 and further to $2,850.
Buyers are expected to step in strongly between $3,000 and $2,850. If there’s a break and close above the 20-day EMA, it would indicate that bearish pressure is weakening. This could potentially trigger an upward movement in the ETH/USDT pair towards $3,545.
