Ethereum (ETH) has fallen by 13% from its current price to dip below the $3,300 mark. This follows whale selloff and forced liquidation sentiments in the broader market, shaking the psychology of the market and sending questions about the asset’s future.
Latest trends by the Ethereum (ETH) whales have triggered massive movements in the market, and an aggregate sell-off amounting to $292 million. This sell-off pushed the ETH price by 13% below $3,300. Experts expect possible support at $2,800, and the spot Ethereum ETFs also witnessed a considerable outflow, reflecting the bearish sentiment of the market.
Whale Selloffs Trigger $226 Million in Liquidations
Ethereum whales have been actively making large deposits of ETH, mostly into Binance, and causing a wave of liquidations. Blockchain analysis revealed that one whale moved 31,968 ETH (valued at $122.3 million) in just two days, while another whale staked 49,910 ETH (worth $170 million) within eight hours.
These whale movements are also tied to repayments on Aave and Spark with liquidations kicked off to repay these debts. Further, the Ethereum Foundation has been selling its ETH and moved 100 ETH out of its reserve at around $4,000 in price bringing in 4,466 ETH in the last year for liquidation purposes that have reached a value of $12.6 million.
Forced Liquidations and Bearish Market Sentiment
The whale selloffs combined with the liquidations for debt-related issues led the price of ETH to see a steep drop of about 13%. Liquidation worth $226 million had taken place over the past 24 hours, long positions worth $198 million of them. Consequently, open interest in Ethereum futures declined by over 10% and stood below $25 billion.
Markets’ trend has turned bearish on the technical side of MACD and Bull-Bear Power (BBP) which is supporting the idea. MACD indicates selling pressure in the short run with a negative divergence that may continue in the short term. BBP now at -729.15 points out that the side is sellers.
Spot Ethereum ETFs Experience $60 Million in Outflows
The bearish trend extends to the Ethereum ETFs, which also witnessed huge outflows. Spot Ethereum ETFs, including Grayscale’s ETHE, withdrew $60 million, while $58 million came from Grayscale’s fund. This would mean that investors are losing confidence in Ethereum, hence delaying its possible recovery.
Analysts Predict ETH Support Around $2,800
Despite the market’s current bearish nature, some positive signs emerge for Ethereum. Crypto analysts believe that ETH could see a low of around $2,800 before reversing back. Market analyst Caleb Franzen indicated an inverse head-and-shoulders pattern that might lead to a price reversal from the $2,800 area to higher prices.
Although ETH has shown resilience in the past, the bearish market sentiment and forced selloffs could push the price even lower before any recovery occurs.
Bullish Sentiment Among Some Ethereum Options Traders
Interestingly, data from the ETH options markets shows mixed sentiment. The options market recorded a 0.5 Put/Call ratio, meaning more traders are buying calls (anticipating price increases) rather than puts (anticipating declines). This hints that even though the spot market is suffering, the long-term potential of Ethereum remains optimistic for certain traders.
The max pain price for options is $3,750, which will be the price at which most options traders will be losing money, so a potential recovery zone if Ethereum can push upward.
For the latest updates about cryptocurrency news, visit Coin Mozo on X.
Conclusion: ETH’s price fell below $3,300, a significant event influenced by whale selloffs and forced liquidations. A bearish market sentiment with $226 million in liquidations will likely make Ethereum face further challenges in the short term. However, analysts are eyeing the $2,800 support level as a potential turning point for ETH, and some data from the options market suggests that there is still optimism for a recovery.
As the market digests the ongoing liquidations and adjusts to the broader sentiment, Ethereum’s next move will depend on whether support at $2,800 holds or if the market’s bearish momentum continues. For now, the outlook remains uncertain, but ETH’s history of resilience suggests it could bounce back in due time.
Also Read: Hawk Tuah Girl Breaks Silence: $HAWK Memecoin’s Devastating Crash And Legal Battle
