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Why Ethereum Price is Down Today?
Ethereum (ETH) is experiencing a decline in price today, primarily due to various factors exerting pressure on the altcoin. After reaching a high of $4,109 earlier this week, Ethereum’s price has dropped by nearly 20%. This downturn can be attributed to multiple reasons contributing to the market sentiment.
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El Salvador’s recent agreement with the International Monetary Fund (IMF) is having an adverse impact on the market sentiment. The country’s $1.4 billion loan deal requires it to reduce its Bitcoin policies, and taxes will now only be paid in U.S. dollars, resulting in a significant shift in investor sentiment.
Ethereum Foundation & Whale Selling ETH
Another factor contributing to the decline is the Ethereum Foundation’s decision to sell large amounts of ETH. The foundation sold 100 ETH, causing a 17% drop in ETH’s value. Over the past year, the Ethereum Foundation has sold a total of 4,466 ETH, worth approximately $12.6 million. This sustained selling from the foundation is having a considerable impact on Ethereum’s price.
Since the #EthereumFoundation sold 100 $ETH on Dec 17, the price of $ETH has dropped by ~17%, marking another successful top sale. Over the past year, the #EthereumFoundation has sold 4,466 $ETH ($12.6M) across 32 trades, with 15 of them executed at the top(marked in red in the…pic.twitter.com/DA7nGAgbxr — Lookonchain (@lookonchain) December 20, 2024
The market is also facing significant selling pressure from large players. Recently, a whale deposited almost 50,000 ETH ($170 million) into Binance, inducing fears of additional selling. The whale withdrew over $137 million worth of stablecoins, indicating a shift in strategy that might be influencing Ethereum’s price.
Despite this decline, the $3,250 support level may prevent further declines.
This article was originally published on [Coinpedia].
Source: coinpedia.org
