- ETH Drops Below $2K – Ethereum risks a 75% decline as market liquidations surpass $600M, signaling bearish sentiment.
- Institutional Outflows Rise – Spot ETH ETF withdrawals exceed $120M, highlighting reduced institutional confidence in Ethereum.
- Whales Accumulate 330K ETH – Major holders buy aggressively, while 600K ETH exits exchanges, suggesting a shift to long-term investing.
Ethereum price is under intense selling pressure once more; it fell below $2,000 earlier today, which may cause it to tumble another 75% to about $1,250. A substantial gloomy outlook for the altcoin is shown by the fact that ETH has dropped more than 16% in the last week, bringing its year-to-date losses to more than 37%. On the other hand, Ethereum ETF outflows significantly increased last week, suggesting a drop in institutional interest.
Ethereum Enters Bear Market Amid Technical Weakness
Following the US presidential election in November 2024, Ethereum (ETH), the biggest altcoin globally, entered a severe bear market that erased all of its gains. Ethereum is leaving a parallel channel, a technical structure that suggests possible adverse price movement in the future, according to cryptocurrency analyst Ali Martinez. Ethereum price may drop by another 75% to the $1,250 range if it is unable to hold onto this support.
The decline in ETH prices today occurs alongside a wider cryptocurrency market correction, with market liquidations exceeding $600 million according to Coinglass data. Moreover, the open interest for ETH has decreased by 2.67% to $19 billion, indicating a bearish outlook among futures traders.
Ethereum Faces Heavy Liquidations as Institutional Interest Declines
The Ethereum market experienced considerable volatility yesterday, with more than $230 million in long positions being liquidated, as reported by crypto analyst Ali Martinez. The surge of liquidations has forced out highly leveraged traders, underscoring the present market instability concerning the altcoin.
Additionally, institutional interest in Ethereum has been rapidly declining. In the past week, the total withdrawals from spot Ethereum ETFs exceeded $120 million. Despite this drop, analysts in the cryptocurrency market are still hopeful about ETH and believe it will start to recover again.
Growing Confidence in Ethereum as Whales and Investors Accumulate
Market analysts are optimistic about an Ethereum price recovery in the days ahead, despite the recent bearish onslaught. According to cryptocurrency researcher Ali Martinez, 330,000 ETH have been bought by Ethereum’s biggest whales in the last 48 hours, indicating a significant buildup by significant holdings.
Furthermore, nearly 600,000 ETH were taken out of cryptocurrency exchanges in the last week, indicating a possible move toward long-term investing. These trends emphasize increasing confidence from major investors and diminished selling pressure on trading platforms.
For Ethereum’s momentum to turn positive, the bulls need to regain the $2,460 resistance level. A substantial 10.95 million holders own ETH at these levels, indicating that they must surpass this to initiate a rally upward.
Crypto trader and analyst Crypto Patel has voiced a positive outlook on Ethereum (ETH), highlighting his approach of purchasing during market downturns. “Patel mentioned, ‘Purchasing $ETH at every dip for $10k/ETH.’” He thinks that this is the final chance to accumulate before the next significant price increase of Ethereum.
