Ethereum (ETH) Bearish Signal, $3,500 the Next Target?
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is showing signs of potential price decline following recent bearish price action. In addition to price action, whales and industry experts also appear to be losing interest in altcoins, according to on-chain analytics firms IntoTheBlock and CryptoQuant.
Will ETH price fall?
recent, Ethereum Prices surged more than 15%, hitting the $4,100 mark for the first time since March 2024, when prices fell significantly amid selling pressure. Historically, ETH has reached this level five times, each time encountering price declines and significant selling pressure.
Ethereum (ETH) foreign exchange reserves rise
This time, going by past trends, it appears that whales and long-term holders are continuing to deposit their ETH on exchanges, as revealed by CryptoQuant’s ETH exchange reserves indicator.
Data showed that reserves increased by nearly 100,000 ETH worth $400 million, which may indicate increasing selling pressure as prices approach six-month highs.
Staking activity continues to increase
In addition to growing reserves, whales are also starting to withdraw tokens from staking, suggesting they are gradually taking profits due to the recent price spike, or that they have lost interest in holding ETH long-term.
The recent activities of Tron founder Justin Sun prove this. December 16, 2024, Whale Transaction Tracker point chain A post shared on X (formerly Twitter) claimed that Sun’s associated wallet address requested the withdrawal of 52,905 ETH, worth $209 million, from staking protocol Lido Finance.
Ethereum (ETH) Technical Analysis and Key Levels
According to expert technical analysis, ETH appears to be forming a bearish double top price action pattern at strong resistance at $4,100. In addition to the double top pattern, ETH’s relative strength index (RSI) is declining, indicating a bearish divergence, which is further evidence of falling prices and increasing selling pressure.
Based on recent price action, ETH is likely to drop 12% in the future to reach $3,500 levels.
current price drop
At press time, ETH was trading close to $3,970, with the price slightly down 0.80% in the past 24 hours. Its trading volume surged 60% during the same period, indicating increased participation from cryptocurrency enthusiasts amid the recent price surge.
