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Ethereum (ETH), the leading altcoin, has shed over 11% of its value in the last seven days. Within this period, whales in the ecosystem have redistributed 110,000 ETH worth millions of dollars. Renowned on-chain crypto analyst Ali Martinez highlighted this development to show declining Ethereum ownership by whales.
Regional tensions add pressure to Ethereum price action
The development has sparked anticipation of possible major price movement in the coming days for Ethereum. Notably, redistributions such as this suggest that Ethereum is spreading from just a few large holders into multiple addresses.
The movement could mean several things, such as potential repositioning into crypto exchanges for selling. The redistribution might also mean that whales are moving ETH off exchanges as they intend to hold it long term.
Regardless of the reason, historical precedence indicates that whale movements often signal volatility. At the moment, market participants and investors alike are treating the development with caution. If Ethereum continues its downward movement, which it has been experiencing the last seven days, it might trigger panic on the market.
As of press time, Ethereum is changing hands at $2,915.93, which reflects a 6.06% decline in the last 24 hours. The coin dropped from a daily peak of $3,109.93 to a low of $2,901.33 after it reached the $3,000 support.
Developments in the broader financial sector suggest that the sharp decline in Ethereum’s price might have been triggered by regional tensions. After U.S. President Donald Trump’s speech at Davos, investors decided to move capital to traditional safe-haven assets.
The price of gold has surged by over 2.15% as a result. The development has impacted the cryptocurrency market, which has registered a 2.95% decline in the last 24 hours.
Key Ethereum price levels to watch as rebound hopes remain
It is worth mentioning that in the midst of this price dip, some whales could leverage it to accumulate more Ethereum in a strategic buy. With the price once again below the $3,000 level, attention has shifted to the $2,716 support for the coin.
Ethereum has the potential to overcome the current bearish outlook and enter a bull run. However, to achieve this, it requires more inflow.
The asset’s trading volume has jumped by 45.08% to $31.83 billion in the last 24 hours, but given the broader financial market signals, it appears that more inflow could help trigger a price rebound.
As U.Today reported, Ethereum has the potential for a breakthrough, but the price needs to stay above $3,350. If Ethereum stabilizes above that price zone without sudden sell-offs, a bullish rally could occur.
Godfrey Benjamin
Tomiwabold Olajide
Yuri Molchan