Important points
- ETH has fallen 10% and is currently trading at around $3,100 per coin.
- The bearish performance comes as the broader crypto market is recording a massive decline.
ETH falls 10% amid widespread market decline
Ether, the second-largest cryptocurrency by market capitalization, has lost 10% of its value in the past 24 hours as its price approaches the whale’s cost basis, triggering an increase in profit taking and loss realization.
This latest development comes as Ethereum investors have ramped up their sales activity over the past few days. Since Sunday, investors have posted more than $500 million in profits and more than $100 million in losses, data obtained from Santiment revealed.
In addition to that, the price of Ether is approaching the average cost basis or realized price for whales with balances of 10,000 to 100,000 ETH, which is around $2,900. Below this cost base, there will be intense selling pressure as whales look to cut their losses.
Whales have played a key role in absorbing selling pressure since ETH’s price decline accelerated last month, with Whales increasing its overall balance by 890,000 ETH during this period.
ETH could fall below $3,000 if selling pressure increases
The daily chart of ETH/USD remains bearish and efficient as Ether has lost 10% of its value in the past 24 hours. The coin faced rejection at the previous trendline break near $3,592 earlier this week and has fallen 10% since then. At the time of writing, ETH is trading at $3,140 per coin.
If the decline continues, ETH could lose the $3,000 support level and fall towards the psychological level of $2,900. Failure to close the daily candlestick above the $3,170 area could trigger further selling in Ether.
Similar to Bitcoin, Ethereum’s RSI and MACD indicate bearish momentum is gaining momentum, hinting at a deeper correction to come.
However, if Ether recovers and closes the daily candlestick above $3,170, it could move higher toward the next resistance level at $3,592.
