Can Ethereum Reverse its Course After Recent Price Decline?

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Can Ethereum Reverse its Course After Recent Price Decline?

  • Ethereum’s price has dropped to $2,598, a 1.90% decline in 24 hours.
  • The Ethereum Foundation sold 100 ETH for approximately 262,474 DAI.

Ethereum’s price has dropped to $2,598, marking a 1.90% decline over the past 24 hours. Meanwhile, trading volumes surged, reaching $13.31 billion, which represents a significant 30.23% increase. Additionally, the drop in Ethereum’s market capitalization by 1.49%, now sitting at $316 billion, combined with a steady circulating supply of 120.37 million ETH, raises concerns among investors. These factors point to potential further corrections.

Several large-scale whale transactions currently influence market sentiment. The most notable transfer involved a staggering 43,331 ETH, valued at over $113 million, which moved to Coinbase Institutional. This significant shift raises questions about potential large-scale liquidations or repositioning by institutional players. Consequently, this movement may contribute to Ethereum’s current downtrend.

In addition to this major transfer, two other prominent transactions were observed. A combined total of 25,194 ETH, with an estimated value of $66.13 million, was transferred to Coinbase in two separate transactions. Thus, this activity adds downward pressure to Ethereum’s price in the short term. Another major movement involves 8,487 ETH, worth $22.38 million, which was transferred to Binance. This influx of ETH to the exchange could increase selling pressure further. If liquidation occurs, it may drive down Ethereum’s value even more.

Moreover, a noteworthy transfer of 9,534 ETH from Wintermute, a prominent market-making firm, to an unknown wallet has drawn attention. Valued at $25.05 million, this move hints at behind-the-scenes market maneuvers. Meanwhile, a dormant address holding 70 ETH was activated after more than 9.2 years, but the impact of this specific transfer is likely minimal compared to larger whale movements.

Ethereum ETH Approaches Critical Support Levels

Ethereum faces strong resistance at $2,634 and support at $2,593. A bearish crossover appeared between the 9-day and 21-day moving averages (MA). Currently, the price sits below both $2,600 and $2,605, which signals potential further declines.

Can Ethereum Reverse its Course After Recent Price Decline?

Ethereum (ETH) Price Chart (Source: TradingView)

Technical indicators suggest that Ethereum could encounter further challenges as it approaches critical support levels. The Relative Strength Index (RSI) currently stands at 28, while the average RSI is 31. This low RSI level indicates that Ethereum is oversold, which could suggest a potential reversal may occur soon. However, the average RSI signals continued bearish momentum in the short term. Therefore, market sentiment remains negative.

Investors should exercise caution as oversold conditions can persist longer than expected. Additionally, the Ethereum Foundation sold 100 ETH for approximately 262,474 DAI just 10 minutes ago. This sale marks a total of 3,766 ETH sold for 10.46 million DAI in 2024. Notably, 1,250 ETH, valued at $3.06 million, sold in September alone. Such sales could indicate ongoing efforts by the foundation to manage its holdings. Ultimately, this activity may impact market supply and price stability.

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