The inherent volatility of the cryptocurrency market frequently results in unanticipated events that impact the whole sector. One such incident that occurred recently has investors’ attention worldwide. In an unexpected move, an Ethereum whale sold all their ETH holdings, losing a substantial $6.5 million. This abrupt move has sparked debates and analysis among market players and raised fears in the cryptocurrency community about a possible decline in Ethereum’s price trajectory.
Unprecedented Market Analysis and Ethereum Whale Sell-Off
Reportedly, for $2,903, a prominent cryptocurrency whale decided to sell all 6,714 ETH of its holdings in Ethereum (ETH). This calculated risk resulted in a significant $6.45 million loss. In addition, market indicators that indicate declining investor interest in the altcoin include the Relative Strength Index (RSI), which has continuously trended below the middle. Additionally, significant averages indicate a bearish curve, suggesting a negative price outlook shortly.
Ethereum (ETH) trades at $2,902.42, with $10.1 billion worth of trades occurring during 24 hours. The coin has witnessed a loss of 4.07% over the past 24 hours, moving between $2,935.95 and $2,894.15. The current market capitalization of Ethereum is $348.6 billion. Market analysts say that if the price overcomes the critical resistance level of $3,017, bullish momentum may restart, potentially breaking the descending channel pattern. However, a decline towards this month’s low of $2,650 could occur if bears maintain their dominance.
Elements Affecting Ethereum’s Decline and Prospects
Since mid-March, Ethereum, the most popular altcoin, has been trapped in a descending channel pattern, suggesting investor enthusiasm is waning. Moreover, the delayed approval of the Spot Ethereum ETF by the Securities and Exchange Commission (SEC) has emerged as a key reason contributing to the coin’s adverse price movement.
Furthermore, the Dencun hard fork was recently implemented on March 13, 2024, to improve platform scalability and reduce growing transaction fees. Although scalability has increased and transaction costs have significantly dropped, Ethereum’s price has not increased due to the upgrade.
Instead, the coin was rejected after the upgrade, setting off a precipitous decline that continues to this day. This scenario has further heightened the mystery around Ethereum’s future trajectory, leading market participants to wonder if the upgrade was the cause of the coin’s current decline.
