Ethereum has faced significant selling pressure in recent days, with large holders, commonly known as whales, offloading over 440,000 ETH. This wave of selling has pushed Ethereum’s price to test crucial support levels, raising concerns about a potential further decline. However, key indicators suggest that market momentum may soon shift in Ethereum’s favor.
On-chain data reveals that one wallet recently sold 8,074 ETH at an average price of $2,431, while another transferred 10,000 ETH, valued at $23.44 million, to Binance within a span of just two days. At the time of writing, Ethereum was trading at $2,354.64, reflecting a 5.46% drop over the last 24 hours.
Despite the panic selling, some investors believe Ethereum may find stability around its current levels. A closer look at the market sentiment through in/out-of-the-money data shows that approximately 43.5% of Ethereum addresses remain profitable, with a concentration of holdings between $2,479.31 and $2,628.70. However, 36.82% of holders are at a loss, particularly those who purchased ETH between $2,479.31 and $3,024.48. This distribution suggests that selling pressure could intensify if Ethereum’s price continues to drop.
Ethereum’s recent price movements indicate a battle between support and resistance. The cryptocurrency has been trading near a key support level at $2,347.21, which, if broken, could lead to a further decline toward the next significant support zone at $2,272.32. However, a recent bounce from the $2,347.21 level suggests that this support remains intact. In the short term, Ethereum faces resistance at $2,479.31. A successful break above this level could trigger a market reversal and drive renewed optimism.
Despite the recent downturn, Ethereum’s network activity remains resilient. The number of active addresses interacting with the network has increased by 1% over the past 24 hours, reaching 21.28 million unique addresses. Additionally, transaction volume has risen by 0.96%, indicating that investors remain engaged despite the price fluctuations. This sustained network activity suggests that Ethereum’s fundamentals are still strong, and a potential recovery could be on the horizon if market confidence returns.
One factor contributing to the recent volatility is the Bybit hack, which saw $1.4 billion worth of ETH affected. This incident likely fueled panic selling, exacerbating the downward pressure on Ethereum’s price. However, as the market digests the impact of the hack and selling pressure subsides, Ethereum may regain stability and potentially bounce back from its current support levels.
Overall, while Ethereum has faced significant selling pressure, its strong network engagement and key support levels indicate that a recovery is still possible. Investors will be closely watching whether Ethereum can hold above critical price zones and whether market sentiment shifts in favor of a rebound.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist