Short Description:
Ethereum’s price has plunged as heavy whale selling and poor market sentiment create a bearish outlook, with technical analysis pointing to further potential declines.
Read Time: 3 minutes, 15 seconds
Main Article:
Ethereum Price is experiencing a significant downturn, tumbling over 12% in recent sessions to trade near $2,636. This sharp decline is driven by a confluence of negative factors, eroding investor confidence and signaling a possible deeper correction. The market sentiment has deteriorated markedly, shifting from cautious optimism to overt bearishness as key technical supports have been breached. Analysts point to a confirmed breakdown from a bearish ascending wedge pattern, a technical formation that now projects a further drop toward the $2,465 level. For any hope of a trend reversal, Ethereum must decisively reclaim the $2,802 level, which has flipped from support to a critical resistance barrier.
Central to this sell-off is aggressive whale activity. Data reveals that large holders controlling between 10,000 and 100,000 ETH have offloaded more than 1.1 million coins in the past week—a staggering $2.8 billion in selling pressure. This distribution directly impacts spot markets, overwhelming available liquidity and accelerating the price drop. When influential whales reduce their exposure, it often creates a domino effect, prompting smaller investors to follow suit out of fear of further losses. This mass exodus has made a near-term recovery increasingly challenging for the ETH price.
The on-chain landscape presents a mixed but precarious picture. Metrics show that less than 50% of the total Ethereum supply is now in profit, a threshold that historically amplifies fear and uncertainty among holders. While this could temporarily slow selling as investors avoid realizing losses, it is a fragile state. If the Ethereum price continues to weaken, this fear can quickly turn into panic-driven selling to avoid deeper losses. The immediate focus is on whether ETH can find stabilization at the $2,570 support zone. Holding this level is crucial for bulls to attempt a counter-rally, while a break below would likely validate the bearish technical target and invite another wave of selling pressure.
Short Summary:
In summary, Ethereum faces strong headwinds from massive whale selling and broken technical supports, leading to a bearish price outlook. The key watchpoints are the $2,570 support level and the $2,802 resistance. Reclaiming $2,802 is essential to invalidate the current downtrend, while failure to hold support could see ETH test the $2,465 target. Market sentiment and on-chain distribution will be critical drivers in the sessions ahead.
