Ethereum (ETH), the second-largest cryptocurrency by market cap, is facing potential price decline amid recent bearish price action. Whales and industry experts are showing signs of disinterest in the altcoin, according to on-chain analytics firms IntoTheBlock and CryptoQuant.
Will ETH Price Decline?
After a recent surge of over 15%, ETH reached $4,100 for the first time since March 2024. However, it faced selling pressure and a significant price decline. Historical data shows that whenever ETH has reached this level in the past, it has encountered selling pressure and a price decline.
Ethereum (ETH) Rising Exchange Reserve
Recent data from CryptoQuant indicates that whales and long-term holders are depositing their ETH to exchanges, with exchange reserves increasing by nearly 100k ETH worth $400 million. This uptrend in exchange reserves could signal increased selling pressure as the price approaches a six-month high.
Rising Unstaking Activity
In addition to rising exchange reserves, whales have started withdrawing tokens from staking, indicating a potential profit-taking behavior or a loss of interest in holding ETH long-term. Notably, Justin Sun, the founder of Tron, recently withdrew 52,905 ETH worth $209 million from the staking protocol Lido Finance.
Ethereum (ETH) Technical Analysis and Key Levels
Technical analysis suggests that ETH is forming a bearish double-top pattern at the $4,100 resistance level. The Relative Strength Index (RSI) is falling, indicating a bearish divergence and suggesting a potential price decline and increased selling pressure. Experts predict a possible 12% decline for ETH, targeting the $3,500 level in the near future.
Current Price Decline
As of now, ETH is trading near $3,970 with a slight decline of 0.80% in the past 24 hours. Trading volume has increased by 60%, indicating heightened activity from crypto enthusiasts following the recent price surge.
In conclusion, Ethereum (ETH) is facing challenges as whales show signs of profit-taking and industry experts predict a potential price decline. Traders and investors should monitor key technical levels and market indicators to make informed decisions amidst the evolving market conditions.