Thursday, April 18, 2024

Ethereum Experiences Significant Price Decline as Investors Take Profits.

The second-largest cryptocurrency asset by market capitalization, Ethereum (ETH), is presently experiencing a downturn. The price of ETH has dropped 7% today and nearly 20% this week, erasing previous gains. The selling pressure on Ethereum is intensifying as a result of large-wallet investors, also referred to as whales, liquidating their holdings and extracting profits, according to on-chain data analytics.

The price of Ethereum collapses due to increased selling pressure

In the last four days, three large-wallet investors have profited from their Ethereum holdings, according to data from the crypto intelligence tracker Spotonchain. The three Ethereum whales made $39 million in profit by selling 26,946 ETH, which was valued at $95.7 million. The transactions happened on Binance from March 15 to March 19.

The amount of cryptocurrency available on exchanges has grown as whales lose their ether. Ethereum reserves on exchanges increased from 13.92 million to 14.43 million between March 15 and 19. Increased supply on exchanges suggests that there is more ether available for sale.

The Santiment chart below illustrates how Ethereum’s price dropped in tandem with this rise in supply, corroborating the theory that profit-taking played a role in the reduction in Ether’s value.

The price of Ethereum can reach $2,900

The price of Ethereum and Bitcoin is highly connected. Thus, combined with elements like profit-taking and whale activity, Ethereum’s price likely decreased as a result of the price reduction in BTC.

The Fair Value Gap (FVG) on the monthly chart of ETH indicates that the price is about to enter the $2,717–$3,200 region. The altcoin’s price may rise back towards resistance at $3,500 (seen by R1 in the chart below) once it gathers liquidity in this region.

With red bars flashing on the Moving Average Convergence/Divergence indicator, the 1-day ETH/USDT chart indicates that bears are taking control. Since ETH is not now oversold, the Relative Strength Index (RSI) stands at 42.05, which is near the neutral zone. If the ETH RSI falls into the oversold area, it would indicate a buy signal, allowing shelved buyers to enter the market.

A daily candlestick close below $3,200, the upper border of the FVG, would trigger a stronger correction that might push the price of ETH towards support around $2,166.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular