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ETH Whale Selling? Ethereum Price Risks $3000 Collapse
The cryptocurrency market has continued to exhibit bearish tendencies throughout the day, with Bitcoin and Ethereum prices plummeting further. The recent price drop below the psychological threshold of $3,500 has sparked concerns about a potential collapse in Ethereum’s value, potentially reaching as low as $2,900.
As seen on Coinmarketcap, ETH whales appear to be exiting their positions, which could hinder an immediate recovery in the market. The asset currently trades at $3,380, recording a loss of 0.91% in intraday trading. A decrease in market capitalization and a massive trading volume of $123.5 billion further emphasizes the bearish mood gripping the cryptocurrency space.
Key Takeaways:
* ETH whales have initiated a short position by transferring borrowed ETH to Binance, suggesting that institutional investors are betting against the asset.
* The Ethereum price has broken down from a double-top pattern, indicating a potential decline in value of 14% and retesting the $2,900 floor.
* If the bearish thesis holds true, any attempts to break above $3,500 could be met with strong selling pressure.
In this article, we will delve into recent on-chain data that indicates a shift in market sentiment. We will also examine the implications of a potential Ethereum price collapse and analyze the current chart setup of the asset.
ETH Whales Open Short Positions
Two significant Ethereum transactions have been reported by EmberCN, highlighting two massive transfers of ETH to Binance from the Aave protocol. The first address borrowed 34,000 ETH ($114.85 million) in a matter of six hours before transferring it to Binance. The second address executed a similar action, borrowing 11,800 ETH ($39.86 million) within the past 10 hours and sending it to the cryptocurrency exchange.
These transactions suggest that institutional investors are opening short positions in Ethereum, fueling fears about an imminent collapse in price.
Source: www.cryptonewsz.com
