Recent market data from CoinMarketCap reveals that Ethereum has experienced a 10.23% decline in price over the past week, in line with the overall negative movement in the cryptocurrency market. This downturn has been attributed to various factors, including heightened geopolitical tensions in the Middle East and an increase in liquidations of long positions.
Despite a slight rebound of 3.21% in the last day, investors remain cautious about a full recovery in Ethereum’s price, as bearish sentiments continue to prevail in the market. Concerns have been amplified by reports of a significant sale of ETH by an early Ethereum ICO participant, adding to the downward pressure on the cryptocurrency.
The Ethereum wallet address “0xBF4” has been identified as the entity behind the recent sell-off, moving a total of 40,000 ETH, equivalent to $101 million, to exchanges in just two weeks. This wallet, which acquired 150,000 ETH during Ethereum’s ICO in 2014, has raised alarms among investors, as large-scale token offloads are often interpreted as bearish signals for the market.
In addition to “0xBF4,” other investors have also been selling off large amounts of ETH, with 108,000 ETH worth $259.2 million being transferred to exchanges in the past 24 hours alone. This heightened selling activity indicates a negative sentiment surrounding Ethereum, despite its recent price rally to $2,399.
While Ethereum currently maintains its position as the second largest cryptocurrency with a market cap of $291.40 billion and a market dominance of 13.47%, the ongoing selling pressure could potentially drive its price down to $2,200 or even lower to $1,600. Traders and investors are advised to closely monitor the market situation and adjust their strategies accordingly to navigate the volatile cryptocurrency landscape.