Key takeaways
- ETH has fallen about 10%, trading near $3,100 per coin.
- This downturn coincides with a broad-market sell-off in the cryptocurrency space.
ETH drops 10% amid broader market sell-off
Ether, the second-largest cryptocurrency by market capitalization, has declined roughly 10% over the past 24 hours. The move has prompted increased profit-taking and loss realization as prices have approached the cost basis held by some whale holders.
Recent data shows that Ethereum investors have stepped up selling in recent days. On-chain analytics indicate over $500 million in realized gains and about $100 million in realized losses have been booked since Sunday.
Additionally, Ether’s price is approaching the average cost basis — the realized price — for wallets holding between 10,000 and 100,000 ETH, estimated at roughly $2,900. A drop below that level could trigger more intense selling if these large holders look to cut losses.
Whales have played a key role in absorbing selling pressure during the recent downtrend, increasing their collective balances by about 890,000 ETH over the last month.
ETH could fall below $3,000 if selling pressure intensifies
The daily ETH/USD chart remains bearish after Ether lost around 10% in the past day. The token faced rejection at a previously broken trendline near $3,592 earlier this week and has since dropped. At the time of writing, ETH trades around $3,140 per coin.
If selling continues, ETH may breach the $3,000 support and test the psychologically important $2,900 level. Failure to close the daily candle above $3,170 could invite further downside pressure.
Like Bitcoin, Ethereum’s RSI and MACD indicators are signaling increasing bearish momentum, suggesting the possibility of a deeper correction ahead.
On the other hand, a recovery that closes the daily candle above $3,170 could open the way for a move back toward resistance near $3,592.