Key Insights
- Ethereum price dropped over 4% and slipped below the $2500 support mark.
- Trump’s WLFi just moved $200M in ETH to Coinbase Prime & staked $60M ETH at Lido.
Ethereum price failed to absorb selling pressure and continued to exhibit bearish swings. It has breached its crucial support cluster of $2500 and dropped below it, revealing bears’ dominance.
At press time, ETH price was trading at $2343, noting a price decline of over 4.75% in the past 24 hours. Its market cap stood at $282.40 Billion, and the trading volume surged over 25.36% during the intraday session.
Ethereum Attracts Strong Inflows: Are Investors Betting Big?
Despite the decline, the macroeconomic momentum of Ethereum remains solid. ETH has experienced a regular influx during the recent period. It reached its peak through substantial cryptocurrency transfers amounting to $260 Million.
Recent Ethereum transactions demonstrate a $200 Million transfer directly to Coinbase Prime. Blockchain finance enabled strategic asset management by simultaneously staking $60 Million in Ethereum on Lido as an additional security measure.
Large transfers corresponded with the steady rise of Ethereum holdings. This occurred as 500 ETH turned into over 2,000 ETH during this short period.
The massive ETH investment from President Trump’s associates indicated positive market predictions about crypto. They are now looking toward potential emerging bullish crypto conditions.
Large deposits of assets into Coinbase and Lido potentially put holders at risk. This is because of possible regulatory challenges and operational issues in centralized staking exchanges.
The substantial ETH transactions indicate positive sentiment about future asset value since stakeholders expect increased returns through staking rewards.
Ethereum Exchange Reserves Decline: Is a Supply Squeeze Coming?
Ethereum exchange reserve data significantly declined and dropped to its lowest point since January.
The dramatic reduction in exchange reserves coincided with an ETH price decline to $2300. However, a drop in exchange reserves highlighted that a lower supply is available for trading. Moving ahead, it could see a supply squeeze in the coming sessions.
Conversely, the decrease in reserves could also heighten price volatility. Large buy or sell orders could result in more pronounced price swings with fewer ETH available on exchanges.
If the broader market sentiment turns negative or if there is a significant sell-off, the reduced liquidity could exacerbate price declines.
Ethereum Price Prediction: Is Further Selloff Possible?
Ethereum price prediction on a daily timeframe displayed a bearish outlook. It formed a falling channel pattern and has revisited the Sep 2024 lows of $2300.
The current momentum was bearish, and bulls failed to hold their grip and remained on the back foot. The Open Interest (OI) has dropped over 3.50% to $20.85 Billion, underlining a long unwinding move in the past 24 hours.
However, a recent post by MarzellCrypto suggests that a rebound is incoming. Historical price analysis confirmed that a sharp rebound follows ahead when it goes into the oversold region.
Likewise, this time, ETH price looks massively oversold, and a rebound could be seen next. If Ethereum price manages to hold $2300, it could trigger a rebound and push it toward $2450, possibly reaching the $2600 mark.
On the other hand, the token may fail to defend the demand zone of $2300. If this happens, a bearish move could lead to a fall toward $2000 in the coming sessions.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
