Why Ethereum is Going Down Today: Will ETH Take Support at $2,800

Will Ethereum Price Drop Below $2,800 Amid Massive Whale Selloff?

The price of Ethereum (ETH) has experienced a significant crash, plummeting over 15% in the last 24 hours, falling under $3,122.80. This decline comes amid substantial selloffs by Ethereum whale entities and the Ethereum Foundation. With ETH falling below the crucial support level of $3,500, heavy liquidations of long positions have occurred, and analysts are predicting the next support level at around $2,800.

Moreover, Fed rate cut and US government shutdown are some other possible reasons behind the ETH price fall. As of press time, Ethereum's price is trading 15% down at $3,122.80, with $375.78B in market cap and $69.95B in 24-hour trading volume. 

Source: CoinMarketCap

Massive Ethereum Whale Selloff

Amid a broader crypto market crash, Ethereum whales have been selling off their holdings, leading to a negative sentiment around the asset. Blockchain analytics platform Lookonchain reported that a whale deposited 22,746 ETH, worth $77.7 million, to Binance and withdrew stablecoins to repay debts on Aave and Spark. Over the past two days, this whale has deposited a total of 31,968 ETH, valued at $122.3 million, into Binance. In another instance, a separate whale transferred 49,910 ETH, worth $170 million, to Binance and withdrew $137.8 million in stablecoins.

This turbulence has caused large-scale liquidations in Ethereum, with investors forced to repay their debts. Following the rejection at $4,000, ETH's price has corrected more than 17.5%. Just two days ago, when ETH was trading at $4,000, the Ethereum Foundation sold off another 100 ETH from its holdings, indicating a strategic sale at the market peak. Over the past year, the Foundation has executed 32 trades, selling a total of 4,466 ETH worth approximately $12.6 million, with 15 trades conducted near market peaks.

Will Ethereum Price Drop to $2,800 Again?

Crypto market analysts have turned bearish on Ethereum, expecting the price to drop to $2,800 or below for re-accumulation. This year, Ethereum has largely underperformed compared to other altcoins, testing investors' patience. However, Ethereum bulls believe that once ETH crosses $4,100, a surge to an all-time high will follow quickly.

Despite the selloff, Ethereum options data from Deribit shows some positive signs. A total of 173,000 ETH options expired recently, carrying a notional value of $590 million, with a Put/Call ratio of 0.5, indicating a higher volume of bullish call positions compared to bearish puts. The max pain price is at $3,750, reflecting a key area of interest for traders.