Home Altcoins News Ethereum Price Plunges Again: Will This Trigger the Next Crypto Crash

Ethereum Price Plunges Again: Will This Trigger the Next Crypto Crash

Ethereum Price

Ethereum’s recent price decline has intensified fears of a potential crypto market crash. Over the past 24 hours, the total crypto currency market cap has slipped nearly 3 percent, now hovering around $2.3 trillion. Ethereum (ETH), a key player in the altcoin arena, has been mirroring Bitcoin’s downward trend, heightening concerns among investors.

Ethereum’s Price Takes a Hit

In the latest developments, Ethereum’s price has fallen by more than 4 percent, trading at roughly $2,698 early Tuesday in Europe. This recent slump is part of a recurring trend seen in previous years, particularly in September. Historically, this month has been challenging for the crypto market, often exacerbated by halving events and broader market corrections.

Technical indicators are painting a worrying picture for Ethereum. The cryptocurrency is currently facing a critical resistance level around $2,827. This resistance is pivotal for Ethereum’s price stability; if it fails to break through and convert this level into support, the cryptocurrency may face further declines.

Technical Analysis and Bearish Sentiments

Ethereum’s daily chart shows a potential bearish continuation pattern. The recent death-cross between the 50-day and 200-day Moving Averages (MAs) has further fueled negative sentiment. This technical formation is often associated with market down trends, as seen during the August 5 crash. Additionally, the Relative Strength Index (RSI) remains below the 50 percent threshold, suggesting that bearish forces continue to dominate the market.

The technical outlook suggests that if the negative trend persists, Ethereum’s price could test lower support levels, possibly dropping to around $2,340 before any potential recovery. Investors should remain vigilant as the crypto currency navigates these turbulent waters.

Increased Whale Activity and Market Sentiment

Recent whale activity has added another layer of complexity to the current market dynamics. Over the past few weeks, large holders of Ethereum have been actively moving their assets, reflecting growing anxiety about the market’s short-term prospects. The fear and greed index for Ethereum has also decreased from 53 percent to about 47 percent in just 23 hours, indicating a shift towards more cautious investor sentiment.

Data from Lookonchain reveals significant transactions by major players. Cumberland and Amber Group recently deposited over 12,800 ETGT, valued at more than $35 million, into Binance and Kraken. Another notable transaction involved a whale moving more than 8,800 Ether, worth around $24 million, to Binance at a loss. This whale’s remaining 10,600 ETH, valued at approximately $28 million, represents a loss exceeding $15 million.

Additionally, US spot Ether ETFs have experienced a net outflow of roughly 4,926 ETH, amounting to about $13.6 million. This outflow, primarily driven by Grayscale’s ETHE, under scores a cautious approach from institutional investors.

Outlook for Ethereum

As Ethereum faces resistance levels and increased whale activity, the outlook for the cryptocurrency remains uncertain. With September historically presenting challenges for the crypto market, Ethereum’s performance in the coming weeks will be critical. Investors should keep a close watch on these developments and consider both technical indicators and broader market trends.

While the current downturn might be unsettling, it’s essential for investors to remain informed and prepared for potential fluctuations. Ethereum’s ability to navigate this turbulent period and regain key support levels will be crucial in determining its short-term trajectory.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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