- Dormant whales moved $399M in ETH, sparking fears of a market drop as Ethereum lost key support levels.
- Ethereum dipped to $2,125 before recovering, but losing its trendline support hints at further downside risks.
- Failed breakouts at $3,200 and $3,800 turned sentiment bearish, with traders eyeing $2,100–$2,300 as potential support.
The Ethereum market experienced volatility following the activation of two dormant whale wallets. These wallets transferred 135,548 ETH, worth approximately $399 million, to Bitfinex just hours before a sharp market drop. These wallets originally acquired Ethereum at $153.65 per ETH in early 2019. If the funds were sold, the whales would have secured a $378.3 million profit, representing a 1,817% gain. This sudden move sparked speculation about its impact on Ethereum’s price action.
Ethereum Breaks Key Support Levels
Ethereum saw a highly volatile price action on Binance rising to a high of $2,872.75, only to fall to $2,125.01. It finally ended the day at $2,747.43, posting a loss of 4.26%. The sharp plunge saw it form a red candlestick pattern, affirming increased selling pressure.
A crucial ascending trendline, which previously acted as support, saw a breakdown. The price momentarily dipped below the trendline but rebounded, closing above it. The presence of a long wick below the support indicates intense buying interest at lower levels. However, the loss of the trendline suggests further downside risks.
Market Structure and Next Key Levels
Ethereum faced rejection from resistance zones near $3,200 and $3,800. The price attempted to break above these areas but failed, leading to a downward move. Consequently, market sentiment shifted bearish as Ethereum lost upward momentum.
Moreover, the candlestick pattern reflects increased volatility, with a deep drop followed by partial recovery. This price action signals uncertainty among traders. Additionally, previous consolidations of around $2,800 indicate that this level may act as short-term support. However, if bearish pressure intensifies, Ethereum could retest lower levels between $2,100 and $2,300.
The breakdown of the ascending triangle suggests weakening bullish momentum. Consequently, the market now awaits confirmation of whether the trend will reverse or continue downward. Future price action will depend on Ethereum’s ability to reclaim lost ground or break below key support levels.
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