The cryptocurrency market has taken a hit, with the total market cap sliding nearly 3% in the past 24 hours to approximately $2.3 trillion. Ethereum (ETH), the leading altcoin, has closely mirrored Bitcoin’s recent price movements. As September looms, there’s a growing sense of unease and a looming fear of a potential crypto winter.
The past few weeks have seen a series of concerning developments. Bitcoin, often seen as a barometer for the entire market, has been struggling to maintain its momentum. Ethereum, which had shown some resilience, is now also crumbling due to the bearish pressure.
Ethereum Faces Technical Challenges
Recent data shows Ethereum’s price has dropped over 4% in the past two days, trading at around $2,698 during Tuesday’s early European session. Technically, Ethereum is exhibiting a potential bearish continuation pattern on the daily chart. The recent death cross between the 50 and 200-day Moving Averages (MAs), which preceded the market crash on August 5, has heightened bearish sentiment surrounding ETH.
The daily Relative Strength Index (RSI) has failed to rise above the 50% mark, indicating that bearish control remains strong. Ethereum is also encountering significant resistance at around $2,827—a critical liquidity zone that must be reclaimed as support to ignite a bullish rally.
Potential Downside and Whale Activity
Should the bearish trend continue, Ethereum’s price may fall towards the support level of approximately $2,340 before potentially bouncing back to previous highs.
In response to these market conditions, Ethereum whales have ramped up on-chain activities. The Ethereum Fear and Greed Index has dropped from 53% to about 47% in the past 23 hours, reflecting increased market apprehension.
According to on-chain data analysis provided by Lookonchain, Cumberland and Amber Group deposited a total of more than 12.8k ETGT, worth over $35 million to Binance and Kraken earlier today.
Another whale deposited more than 8.8k Ether, worth about $24 million, to Binance in the last 24 hours at a loss. As of this writing, the whale held about 10.6k ETH, worth around $28 million, which is at a loss of over $15 million.
ETFs Experience Cash Outflows
In the ETF space, US spot Ether ETFs have seen a net cash outflow of about 4,926 ETH, or roughly $13.6 million, led by Grayscale’s ETHE.
As Ethereum grapples with these challenges, the coming weeks will be crucial in determining whether the cryptocurrency can regain its footing or if further declines are on the horizon.
Also Read: Will Fed Rate Cuts Ignite a Bitcoin Bull Run? What to Expect for BTC Prices!
With whales shifting their positions and investors feeling the heat, the next few weeks could be crucial for Ethereum’s future. Stay tuned.