The cryptocurrency market’s inherent volatility often leads to unexpected developments that reverberate throughout the industry. Recently, one such event has gripped the attention of investors globally. An Ethereum whale, in a startling move, chose to liquidate their entire holdings of ETH, incurring a significant loss amounting to $6.5 million. This sudden action has ignited concerns within the crypto community regarding a potential downturn in Ethereum’s price trajectory, sparking discussions and analyses among market participants.

Unprecedented Ethereum Whale Sell-Off and Market Analysis

According to reports a notable cryptocurrency whale opted to divest its entire Ethereum (ETH) holdings, amounting to 6,714 ETH, at a unit price of $2,903. This strategic move resulted in a substantial loss totaling $6.45 million. Furthermore, market indicators such as the Relative Strength Index (RSI) have consistently trended below the midpoint, signaling waning investor interest in the altcoin. Additionally, key averages exhibit a bearish curve, suggesting a pessimistic price outlook in the near future.

As of today, Ethereum (ETH) is trading at $2,902.42, with a 24-hour trading volume of $10.1 billion. The coin has experienced a decline of 4.07% over the past 24 hours, fluctuating between $2,935.95 and $2,894.15. Ethereum’s live market capitalization stands at $348.6 billion. Market analysts predict that if the price surpasses the critical resistance level of $3,017, bullish momentum may resume, potentially breaking the descending channel pattern. However, a continued dominance by bears could lead to a descent towards this month’s low of $2,650.

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Factors Influencing Ethereum’s Downturn and Future Outlook

Ethereum, the leading altcoin, has been ensnared in a descending channel pattern since mid-March, indicating dwindling investor enthusiasm. Moreover, the delayed approval of the Spot Ethereum ETF by the Securities and Exchange Commission (SEC) has emerged as a prominent factor contributing to the coin’s bearish price action.

Additionally, the recent deployment of the Dencun hard fork on March 13, 2024, aimed to alleviate escalating transaction fees and enhance platform scalability. While transaction fees have markedly decreased and scalability has improved, the upgrade failed to bolster Ethereum’s price.

Instead, the coin faced rejection post-upgrade, triggering a steep descent that persists to date. This scenario has prompted market participants to question whether the upgrade has been a catalyst for Ethereum’s ongoing downturn, further deepening the intrigue surrounding the coin’s future trajectory.

Also Read: Spot Ethereum ETF Applicants To Meet US SEC, ETH Price To Rebound?

The post Ethereum Whale Liquidates ETH Portfolio At $6.5M Loss, Price Dip Ahead? appeared first on CoinGape.

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