Ethereum
Ethereum Faces Over $80 Million in Liquidations as Whale Transactions Decline! What’s next for ETH prices?
Today, the cryptocurrency market faced extensive selling, which caused the Bitcoin price to fall significantly below important support levels and head towards a low of $59,000. This drop was triggered by an announcement from Mt. Gox about the start of refunds, which sparked fears of further selling. At the same time, the price of Ethereum also fell significantly from its high of $3,500, causing widespread selling. Furthermore, current on-chain data shows a negative trend for Ethereum, which could prevent it from recovering soon.
Ethereum whale trading declines
This week started with a sharp downturn in the crypto market as the BTC price fell below $59,000. According to Coinglass data, the market saw total liquidations exceeding $350 million over the past 24 hours. In particular, the ETH price saw liquidations of almost $80 million, while long position holders faced liquidations amounting to over $67 million.
Whales, known for their significant influence on asset prices due to their large holdings, are showing negative results in the ETH market. Notably, addresses holding between 100,000 and 1 million ETH have unloaded around 700 million ETH in the last two weeks.
This sale, worth approximately $2.32 billion, reduced their collective holdings to 20.26 million ETH. Since whales typically hold their positions even during bear markets, these large-scale sell-offs are concerning.
Data from IntoTheBlock shows that large trading volume for Ethereum declined this week as the metric fell from a high of $6.7 billion to a low of $3.4 billion. This weakened the volatility of ETH purchases during the week.
Sales to retail investors also increased. The analysis shows that around 25% of ETH users make profits, which likely leads to trades to secure those gains. Typically, sales are low when less than 25% are profitable, but once that threshold is exceeded, investors could look to lock in gains amid potential price declines.
What’s next for the ETH price?
Ether’s uncertainty was resolved with a move lower as it fell below the 50-day SMA at $3,420. ETH price tested buyers’ patience around the $3,200 mark; However, the bears failed to push the price further down. This created a rebound opportunity for the ETH price. At the time of writing, the ETH price is trading at $3,300, down over 4.7% in the last 24 hours.
The falling 20-day EMA at $3,372 and RSI near 28 indicate strong bearish control. Sellers will likely attempt to push the price down to the psychological level of $3,000 and then down to $2,850.
Buyers should intervene strongly between $3,000 and $2,850. If there is a breakout and close above the 20-day EMA, it would indicate that the bearish pressure is weakening. This could potentially trigger an upward move in the ETH/USDT pair towards $3,545.