Ethereum Price Correction: The Aftermath of Whales Selling

The crypto market has been in a state of flux in recent days, with Ethereum experiencing a significant price correction that has seen its value drop from a high of $1,710 to a low of $1,460 in the past 11 days.

This sudden and steep decline has been the talk of the town among crypto investors and traders, who are trying to understand the underlying causes of this correction.

Whales Appear to Sell Ethereum

While market conditions can play a significant role in price corrections, the behavior of Ethereum whales can be a key factor.

On-chain data shows that during this 11-day period, whales holding between 100,000 to 1,000,000 ETH sold or redistributed approximately 350,000 ETH, worth $560 million. This massive outflow of Ethereum could have significantly impacted the price correction that the asset has experienced.

Source: Santiment

The recent price correction has placed Ethereum in a precarious position, as evidenced by IntoTheBlock’s Global In/Out of the Money Around Price (GIOM) model.

The model reveals that the second-largest cryptocurrency by market cap has lost a crucial area of support at $1,600 and now faces a significant challenge in terms of recovering from this decline. The next significant support area sits at $1,330, where over 6.18 million addresses had previously purchased 12.63 million ETH.

Source: IntoTheBlock

However, all is not lost for Ethereum just yet. To end the current downtrend, Ethereum price needs to rebound quickly and reclaim the $1,600 barrier as support.

This could be a turning point for ETH price and potentially set the stage for a climb toward the $2,000 mark.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *