Ethereum (ETH) Price Could Drop Below $3,000 as Whales Retreat

Ethereum (ETH) is currently under significant downward pressure, with its price at risk of falling below the $3,000 mark. This decline is being driven by reduced activity among large investors, known as whales, coupled with broader stagnation in the cryptocurrency market. Here’s an analysis of the key factors contributing to this trend and the crucial price levels ETH holders should monitor.

Decline in Whale Activity Exerts Selling Pressure

Over the past seven days, the net flow of ETH held by whale addresses—those holding more than 0.1% of the asset’s circulating supply—has dropped by 73.19%. This sharp decrease indicates that major investors are offloading or transferring their holdings, reflecting a lack of confidence in ETH's short-term prospects. Such sell-offs often exert downward pressure on prices, as funds are moved to other investments.

Additionally, ETH’s Taker-Buy-Sell ratio has remained below 1 throughout the past week, signaling a bearish trend among derivatives traders. This metric measures the ratio of buy orders executed at market price to sell orders. A value below 1 suggests that sell orders outpace buy orders, indicating increased selling activity and reduced demand for the asset.

Technical Indicators Confirm Bearish Momentum

ETH’s daily chart reveals further bearish signals, with the Moving Average Convergence Divergence (MACD) indicator highlighting a decline in demand. When the MACD line is positioned below the signal line, it typically confirms a downtrend. If selling pressure continues to mount, ETH could breach the $3,070 support level and fall as low as $2,558.

Price Outlook: The Role of Whales

While the current outlook appears bearish, a shift in market sentiment could alter ETH’s trajectory. Should whale investors resume accumulation, they could drive the price upwards toward the $3,415 resistance level. For now, the direction of ETH’s price remains closely tied to the actions of these major investors.

ETH holders and traders should closely monitor whale activity and market trends to navigate the potential volatility ahead.