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The current price of Ethereum is $3,300.
- Following the market drop, short-term holders and small-scale whales caused a net selling pressure of over 120K ETH in Ethereum.
- Big whales have come back to life, stockpiling 210K ETH to withstand the selling pressure.
- Ethereum might continue to drop to $3,110 in order to reach the rounded top pattern's aim.
With short-term holders driving the selling pressure, Ethereum (ETH) saw a momentary drop below the $3,300 critical barrier, resulting in a 4% loss on Wednesday. The leading altcoin may drop to $3,110 if the buy-side push from big whales is unable to overcome the bears.
Short-term holders start a selling frenzy, while Ethereum whales buy the drop.
According to CryptoQuant’s data, investors flooded exchanges with a net inflow of roughly 120,000 ETH worth around $400 million after Tuesday’s general fall in the cryptocurrency market.
Potential selling activity is indicated by net inflows into cryptocurrency exchanges, and outflows are the opposite.
According to the Network Realized Profit/Loss statistic, most investors panicked and booked losses of more than $50 million as a result of ETH’s 12% drop over the previous two days.
The declining blue line in the accompanying chart indicates that investors holding between 1K and 10K ETH were the ones who initiated the majority of the current selling activity. Over the last three days, these investors have spent 110,000 ETH.
The increase in the 365-day, 180-day, and 90-day Dormant Circulation further suggests that the sell-side pressure was mostly directed at short-term holders.
The total number of disseminated coins that were previously kept for a specific period of time is revealed by Dormant Circulation. When this metric rises, it indicates distribution; when it falls, the opposite is true.
With almost $130 million in long liquidations, Ethereum led the derivatives market under pressure from the heavy selling activity. According to Coinglass data, the greatest single liquidation order was for a $17.74 million ETH/USDT trade.
Ethereum exchange-traded funds (ETFs), where investors dumped $86.8 million worth of their ETH holdings, show a similar view.
But in the last three days, big whales with between 10,000 and 100,000 ETH have jumped on the price drop and purchased 210,000 ETH. The market fall, however, did not deter Ethereum long-term holders (LTH), who remained motionless.
A buy-the-dip attitude is also evident in CryptoQuant’s Wednesday exchange net flows, as approximately 200,000 ETH have already been removed from exchanges in the last few hours.
Ethereum Price Forecast: In order to reach the target of the rounded top pattern, ETH may drop to $3,110.
After a 10% drop that saw its price break through the $3,300 critical mark, Ethereum confirmed a rounded top pattern on Tuesday.
Right now, the leading altcoin is making an effort to recover a crucial symmetrical triangle pattern. The triangle’s bottom border ascending line and the $3,425 resistance, which is reinforced by the 50- and 100-day Simple Moving Averages (SMAs), present significant obstacles, though.
ETH may drop toward $3,110, a goal determined by measuring the height of the rounded top and projecting it downward, if it continues to encounter rejection at this resistance and the support level at $3,216 fails.
Since the $3,019–$3,358 area reflects a historically high demand zone where investors bought over 10 million ETH, it may offer support to stop further falls.
However, ETH will encounter resistance near the $3,550 mark if it manages to go beyond the previously mentioned obstacles and regain the symmetrical triangle.
The strong bearish momentum is shown by the Relative Strength Index (RSI) being below the neutral level. The Stochastic Oscillator (Stoch) is in the oversold area, indicating that a recovery is about to happen.
FAQ
Ethereum’s potential drop to $3,110 is based on the rounded top pattern, which suggests a bearish trend. This price target is calculated by measuring the height of the pattern and projecting it downward. Additional selling pressure from short-term holders could push the price further down if key support levels at $3,216 fail.
Large Ethereum holders, or “whales,” have recently accumulated 210,000 ETH, signaling a buy-the-dip strategy to counteract the selling pressure. Their actions reflect confidence in Ethereum’s long-term value and help mitigate some of the bearish momentum caused by smaller holders.
The rise in dormant circulation for 90-day, 180-day, and 365-day periods shows that short-term holders are actively distributing their holdings. This metric suggests that a significant portion of the selling pressure is coming from these investors.
Ethereum faces strong resistance at $3,425, reinforced by the 50- and 100-day Simple Moving Averages (SMAs). On the downside, the $3,216 level is critical support. If this fails, ETH could drop to the $3,110 target. However, the $3,019–$3,358 zone remains a high-demand area, providing additional support.
The Relative Strength Index (RSI) being below neutral indicates strong bearish momentum, while the Stochastic Oscillator in the oversold zone suggests that a recovery could be imminent. These indicators highlight the mixed sentiment in the current market conditions.
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