Ethereum Price Plummets 5%: Why Is ETH Going Down?

Ethereum has recently experienced a 5% drop in its price against the US dollar, raising questions among investors and traders about its ability to regain its footing and potentially close above the critical $3,700 level by the end of the year.

In detail, data from Lookonchain has revealed that a prominent trader, often referred to as a whale, made a substantial purchase of 6,000 ETH during this price dip. This buyer is rumored to be linked with LonglingCapital, and their strategic moves have earned them an impressive profit of $83 million.

Since May 8, 2023, this whale has accumulated a total of 75,400 ETH, valued at about $180.4 million, buying at an average price of $2,392. In contrast, they have recently sold 50,800 ETH for around $172.8 million, with an average selling price of $3,401.

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Ethereum ETH/USD	$3,612.85	$435.1 billion	-6.7%	-8.9%
Bitcoin BTC/USD	$100,537.58	$1.98 trillion	-3.7%	-1.3%
XRP XRP/USD	$2.32	$132.7 billion	-6.1%	-4.1%

Trader Insights: Trader MaxBecauseBTC recently outlined two potential scenarios for ETH holders over the next six months:

• Option A: A possible 5-10x increase in net worth with a 55% probability.
• Option B: A potential 40% decline in net worth with a 45% probability.

Max encourages traders to stay resilient and to focus on potential gains rather than the fear of losses.

Another trader, Cold Blooded Shiller, pointed out that the $3,700 level is a significant resistance point. With only 12 days left in the quarter, he predicts a fierce struggle for ETH to close above this threshold.

This price level is critical as ETH has maintained trading above it for six consecutive quarters but has never managed to secure a close above.

Comparatively, trader Ted likened the current struggle with the $4,000 resistance to ETH's previous challenges near the $1,400 mark during the 2020-21 cycle. He anticipates that closing above $4,100 could lead to a new all-time high.

Market Statistics: Data from IntoTheBlock indicates a significant 11.7% decrease in large transaction volumes alongside a 5.6% drop in daily active addresses. Additionally, exchange netflows have decreased by 132.2%.

Interestingly, transactions over $100,000 saw a rapid increase from 10,365 to 11,817 in just one day. Currently, 81% of ETH holders are in profit, while 8% are breaking even.

To highlight investment trends, BlackRock's iShares Ethereum Trust has shown substantial activity, leading with a $80.7 million net inflow last Wednesday, bringing total inflows to about $3.4 billion.

Looking Ahead: As the crypto market landscape continues to evolve, traders and investors alike are urged to monitor these developments closely while balancing their portfolios with an eye on potential shifts.

Ethereum, Price, Trading