Ethereum’s value has experienced a significant drop of more than 15% below the crucial $3,000 mark, signaling a bearish trend in the market. A prominent investor sold off 26,600 ETH, amounting to over $82.5 million, contributing to the downward pressure on prices.
The recent turbulence in the market has made it challenging for Ethereum to recover from the substantial decline below key support levels, triggered by a broader market downturn influenced by Bitcoin payouts from the Mt. Gox bankruptcy. This influx of additional supply has impacted various altcoins, including Ethereum.
The whale’s decision to dump 26,600 ETH, valued at around $82.5 million at $3,102, was initially met with a 3% drop in Ethereum’s value. However, the investor strategically re-entered the market at a lower price point, taking advantage of the dip by borrowing significant funds to repay debt on Aave.
In the last 24 hours, the market witnessed $639.27 million in liquidations, highlighting the increased volatility and risk exposure in the crypto market. Of this amount, ETH alone accounted for $161 million in liquidations.
The question on everyone’s mind is whether Ethereum’s price will bounce back to $3,000. The rejection at a descending trendline on Monday led to a 19% decline over three days, bringing Ethereum below $3,240 by Thursday, approaching the May 1 low of $2,817.
Currently, Ethereum seems to be stabilizing, with prices making an attempt to break through the $2,900 threshold. At the time of this report, ETH was trading at $2,933 with a market cap of $350 billion, experiencing a surge of over 49% in daily trading volume, possibly due to increased investor activity.
If Ethereum fails to close above the May 1 low of $2,815, it could further drop to around $2,650, representing a 6.5% decline. The relative strength index (RSI) on the daily chart suggests bearish momentum, indicating the potential for a continued downward trend.
On the other hand, a daily candlestick close above $3,500 would indicate bullish strength, potentially pushing Ethereum up by 6% to revisit its high of $3,750. However, Ethereum is expected to consolidate within the range of $2,900 and $3,300 in the near term.