Ethereum (ETH) has experienced significant sell pressure recently, leading to a sharp decline in price. As the largest altcoin on the verge of an uphill climb towards 2025, ETH has plummeted beyond multiple resistance levels, currently trading at $3,336 with a 2% drop in 24 hours and a 19% decline for the week. Whales have been offloading assets, causing declining sentiments after the Federal Reserve’s Jerome Powell hinted at caution for future rate cuts.
Data from Lookonchain shows whales selling off assets to recoup gains, leading to a bearish sentiment in the market. Caution on the Fed’s part could result in delayed cuts, causing funds to flow out of risky assets like Ethereum and other altcoins. An ETH whale recently sold a significant amount of assets on DeFi protocols to repay loans, with the movement of large amounts of ETH to centralized exchanges indicating bearish sentiments.
Recently, the Ethereum Foundation has also been criticized for selling off assets, leading to a drop in ETH price after each sale. Despite the market turbulence, ETH bulls are still hopeful for a recovery and a potential rally above $5K in the altcoin market. Analysts believe that the first step towards an upward movement for ETH involves reclaiming the $3,500 resistance level.
The overall market has seen massive liquidations exceeding $2 billion, with a decline of 8% in market cap within 24 hours. As volumes decrease, experts are uncertain about the anticipated ETH rally, but some investors remain optimistic about a potential recovery. With recent outflows from Bitcoin following a price slump below $100K, there is still hope for a successful rally in Ethereum and altcoins as a whole.
In the coming weeks, it will be crucial to monitor the movements of whales and large holders of ETH, as their actions can heavily influence market sentiment and price movements. The ongoing sell pressure, caution from the Federal Reserve, and potential recovery efforts by ETH bulls will be key factors to watch as Ethereum navigates the volatile crypto market landscape. Despite the current challenges, many in the crypto community remain hopeful for a positive turnaround for Ethereum.
