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Here’s Why Ethereum Price Faces Sub-$3k Correction
The Ethereum price has been experiencing a tumultuous ride recently, with the recent surge above $3,500 potentially being a head fake. As we dive deeper into the on-chain data and market analysis, it becomes increasingly clear that Ethereum faces a correction to sub-$3,000 levels.
Firstly, let’s look at the double-top reversal pattern that has played out in the Ethereum price action. The breakdown of this pattern from $3,500 indicates a potential sell-off ahead, with the possibility of a 16.8% decline to seek support at $2,900.
However, what’s causing even more concern is the significant transfer of Ethereum assets into centralized exchanges by major institutions. Cumberland, a renowned trading firm, deposited an astonishing 16,201 ETH (worth $55 million) into Coinbase on December 24th alone, with multiple transactions including 5,000 ETH, 5,601 ETH, and 5,600 ETH. Meanwhile, Nexo, a crypto lending platform, has been steadily depositing Ethereum to Binance since December 2nd, with a staggering total of 101,756 ETH (approximately $380 million) and another addition of 7,495 ETH (worth $25 million) on the same day.
These massive deposits have sparked concerns about potential selling or trading pressure, which could accelerate bearish sentiment in the market.
Source: www.cryptonewsz.com
