Ethereum Price Freefalls 20% Following $600 Million ETH Liquidation
August 30 2024 - 1:00PM
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Ethereum has been on a wild ride lately. The cryptocurrency took a
nosedive and crashed to a point where ETH changed hands around
$2,550, having lost more than 20% of its value in the last 30 days.
But despite this massive liquidation, Ethereum’s price forecast
still looks rosy. According to Cryptorphic, Ethereum’s future could
see it rebound, and that critical support levels create a leeway
toward a bullish turn. Related Reading: XRP Gains Ground: 20% Of
Institutional Investors Embrace The Crypto There are a couple of
critical reasons for such a slump, especially in the last weeks.
According to a leading blockchain analytics platform, Spot On
Chain, there are four major factors pushing this trend. Based on
their information, major players such as the Ethereum Foundation,
Jump Trading, and two major whale accounts have sold a combined
197.8K ETH worth approximately $599 million. This has doubtless
been one of the move’s factors pushing up. $ETH has painfully
plunged twice in the past month (🔻23.5%). In this 🧵, we highlight 4
key forces likely behind the sale of 197.8K $ETH ($599M),
contributing to recent dumps: • The Ethereum Foundation: – sold
35.4K $ETH ($95M) – still holds 275K $ETH ($677M) • Jump…
pic.twitter.com/MAce0kIgMs — Spot On Chain (@spotonchain) August
28, 2024 Whale Activity Adds To Market Downturn The most prominent
player in that regard is Jump Trading. This group added a net 88.9K
ETH worth $276 million to the various Centralized exchanges from
July 25th to August 6th. It was a pre-emptive move as ETH prices
suddenly took a 20% nosedive on August 5th. Adding to downward
pressure is an ICO whale known as “0xe17.” Since July 9, this whale
has been aggressively depositing large amounts of ETH onto
exchanges. Some of the moves he made included sending 48.5K ETH to
the OKX exchange. Of that, 38.5K ETH was deposited in the month
leading up to the first major price drop on August 5. Another big
whale, “0x682, also faced accusations of contributing to the
market’s decline. It transferred a sum total of 25K ETH worth $73.9
million to Kraken exchange on two occasions. In fact, each of the
transfers was before the observed price drops and furthered the
decline. Bullish Signals Amidst The Bearish Trend Despite the
downturn in recent times, some analysts still remain very
optimistic about Ethereum’s future. Cryptorphic presented a bullish
case for Ethereum, adding that the leading cryptocurrency has an
important area of support between $2,184 and $2,348. This range has
indeed proved quite sturdy, as ETH recently reclaimed it after a
serious market pullback. At the moment, Ethereum changes hands at
$2,559, according to Cryptorphic, close to testing the 35-day EMA
resistance, a key level for the cryptocurrency. ETH Technical
Analysis in a 2-Day Timeframe ETH is holding decent support within
the $2,184-$2,348 range. A few weeks ago, when the market
experienced a major correction, ETH dropped to this same support
range and bounced back. With the price currently at $2,520, ETH is
likely… pic.twitter.com/43Is9sOtYB — Cryptorphic (@Cryptorphic1)
August 28, 2024 If ETH manages to close above this key level, it
would potentially indicate further upside toward testing a higher
resistance level at $3,750. This projection gives some hope to
traders who believe in Ethereum’s long-term potential. Related
Reading: Crypto Crash: $320 Million Wiped Out As Bitcoin And
Ethereum Nosedive Ethereum: RSI Points To A Possible Reversal
Technical indicators provide some cause for cheer, though. The RSI,
one of the leading momentum indicators, is drawing back from the
oversold level, which could suggest that the bears are running out
of steam and the bulls are likely to gather strength. That shift in
momentum might set the stage for a quicker move higher in price,
especially if Ethereum can break through key levels of resistance.
Attention would now be turned to key support between $2,184-$2,348,
an area that has been instrumental in preventing further downside
so far. If bulls were to prevail, key areas of interest would come
in at $2,930, with secondary targets at $3,750. Ethereum clearly
stands at the threshold, posing either a strong recovery or further
consolidation. Featured image from Forbes, chart from TradingView
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