Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently experiencing signals of a potential price downturn. This follows a recent bearish trend, with significant shifts in market dynamics. Insights from on-chain analytics firms, including IntoTheBlock and CryptoQuant, suggest that major stakeholders and industry experts are displaying reduced interest in the altcoin, which could contribute to a continued decline in its value.
Will Ethereum (ETH) Price Decline?
Recently, Ethereum saw an impressive price surge exceeding 15%, reaching an important milestone of $4,100 for the first time since March 2024. However, this achievement was met with substantial selling pressure, leading to a notable price drop. Historically, ETH has reached this price level five times, consistently encountering declines and significant selling pressure each time.
Ethereum (ETH) Rising Exchange Reserve
Examining historical patterns, it becomes evident that large holders, often referred to as whales, and long-term investors are increasingly transferring their ETH to exchanges. This trend is highlighted by CryptoQuant’s metrics on ETH exchange reserves, which show a significant increase of approximately 100,000 ETH, equivalent to $400 million. Such an uptick in exchange reserves typically indicates an impending rise in selling pressure, especially as ETH’s price approaches a six-month high.
Increasing Unstaking Activity
In conjunction with the surge in exchange reserves, there has been a noticeable rise in unstaking activities by major holders. This suggests a strategy to capitalize on recent price increases or a waning interest in holding ETH for the long term. A notable example is the activity of Justin Sun, founder of Tron. On December 16, 2024, the whale transaction tracker Spotonchain reported a request from Sun’s linked wallet address to withdraw 52,905 ETH, valued at $209 million, from the staking platform Lido Finance.
Ethereum (ETH) Technical Analysis and Key Levels
Technical analysis by experts indicates that Ethereum may be forming a bearish double-top pattern at the critical resistance level of $4,100. This pattern is often associated with potential price reversals. Additionally, ETH’s Relative Strength Index (RSI) is declining, signaling a bearish divergence. Together, these factors point towards an increased likelihood of a price drop and heightened selling pressure.
Given the recent price movements, there is a significant possibility that ETH might experience a further decline of approximately 12%, potentially reaching the $3,500 level in the near future.
Current Price Decline
As of the latest market data, Ethereum is trading close to the $3,970 mark, having undergone a slight price decrease of 0.80% over the past 24 hours. During this period, the trading volume has surged by 60%, reflecting increased engagement from cryptocurrency enthusiasts in response to the recent price fluctuations.
“`
This enhanced article includes HTML headings for better SEO structuring and enriches the content with additional detail to boost word count while retaining the original context.
