Ethereum (ETH), renowned as the world’s second-largest cryptocurrency by market capitalization, is currently drawing attention due to indications of a potential price decline. This concern arises from recent bearish price movements. Alongside the price trends, there’s an observable shift in sentiment from whales and industry experts, as highlighted by insights from on-chain analytics firms like IntoTheBlock and CryptoQuant.
Will Ethereum’s Price Decline?
In a recent development, Ethereum experienced an impressive price surge of over 15%, reaching the $4,100 mark for the first time since March 2024. Despite this achievement, ETH encountered significant selling pressure, leading to a noticeable price drop. Historically, this price level has proven challenging for Ethereum, as it has hit this threshold five times, each time resulting in a decline and substantial selling pressure.
The Rising Exchange Reserves of Ethereum (ETH)
Examining past trends, it’s evident that whales and long-term holders are increasingly moving their ETH onto exchanges, as indicated by CryptoQuant’s ETH exchange reserve metrics. This pattern suggests a potential rise in selling activity as the cryptocurrency approaches a six-month high. Data reveals that exchange reserves have surged by approximately 100,000 ETH, valued at $400 million, hinting at potential increased selling pressure.
Unstaking Activity on the Rise
Beyond the growing exchange reserves, there’s a noticeable uptick in unstaking activity among major holders. This behavior suggests that whales are either taking profits following the recent price surge or losing interest in maintaining long-term positions in ETH. A notable example is Justin Sun, the founder of Tron, who recently withdrew 52,905 ETH, valued at $209 million, from the staking protocol Lido Finance, as reported by Spotonchain on December 16, 2024.
Technical Analysis and Key Levels for Ethereum (ETH)
From a technical perspective, Ethereum seems to be forming a bearish double-top pattern at the critical resistance level of $4,100. This pattern, combined with a declining Relative Strength Index (RSI), indicates a bearish divergence. These factors collectively suggest a potential price decline accompanied by increased selling pressure.
Expert analysis points to a strong likelihood of a 12% decline in ETH’s price, potentially reaching the $3,500 mark in the near future.
Current Price Movements
As of the latest data, Ethereum is trading around the $3,970 level, having experienced a modest 0.80% decline in the past 24 hours. During the same timeframe, trading volume has surged by 60%, reflecting heightened interest and participation from crypto enthusiasts amidst the recent price fluctuations.
