The cryptocurrency market saw Bitcoin and Ethereum prices continuing to fall below key levels during the Friday U.S. market session. Amid this bearish sentiment, onchain data suggested that Ethereum whales were exiting their positions, potentially delaying any immediate recovery in the coin price.
According to Coinmarketcap, Ethereum was trading at $3,380 with a 0.91% intraday loss. The asset’s market cap dropped to $407 billion, while the 24-hour trading volume stood at $123.5 billion.
A significant transfer of borrowed ETH to the Binance exchange indicated that crypto whales might be opening short positions in Ether. Two large Ethereum transactions, totaling 45,800 ETH worth $154.71 million, were borrowed from the Aave protocol and sent to Binance within a short period.
These transactions raised speculation about smart money expecting a further correction in Ethereum price and potentially opening up new short positions. The daily chart analysis showed a double-top reversal pattern forming, indicating a potential major breakdown in the Ethereum price if the pattern holds.
The breakdown below the neckline support of $3,500 on Thursday suggested a potential retest of this level before further downside movement. If the selling pressure continues, the ETH price could drop by 14% to retest the $2,900 level. However, a rebound above $3,500 during the retest phase could signal a potential resurgence in buying interest.
Overall, the Ethereum market is currently experiencing a bearish sentiment, with whales potentially opening short positions in anticipation of further price declines. Traders and investors should closely monitor key support levels, such as $3,500 and $2,900, for potential market movements and adjust their strategies accordingly. As always, it’s essential to conduct thorough research and analysis before making any trading decisions in the volatile cryptocurrency market.
