'Cursed Coin' Ethereum Down 8%: What Is Going On?

Ethereum ETH/USD is down 8% on the day to $3,020, leading analysts to discuss whether there is any bullish hope left for the second-largest cryptocurrency.

What Happened: Prominent whale trader Adam referred to Ethereum as a "cursed coin."

Despite open interest rising by 110% since August, Ethereum never came closer than 20% below its all-time high.

The trader suggests two strategies for entering a long position:

1. Buy after a liquidation event below $3,000.
2. Place bids near $2,700, a key support level, if no liquidation event occurs.

Chart analyst Ali Martinez identified critical resistance for Ethereum between $3,360-$3,450 and key support between $3,066-$3,160.

He also noted that three whale wallets currently control around 43% of Ethereum’s total supply.

The most critical resistance level for #Ethereum $ETH lies between $3,360 and $3,450, while key support is found between $3,066 and $3,160. pic.twitter.com/gE0vEW35vb

— Ali (@ali_charts) January 13, 2025

Also Read: Ethereum Price Drops 5% In 7 Days: Truly An ‘Excellent Buy-The-Dip Opportunity’?

Why It Matters: Benjamin Cowen, CEO of IntoTheCryptoverse, highlighted that Ethereum's supply is set to return to pre-Merge levels within weeks, growing by 45,000 ETH per month and currently just 32,000 ETH below the pre-merge supply.

Despite initial demand improvements after rate cuts, 10 months of inflationary supply growth have kept prices under pressure.  

Lookonchain data revealed that whales withdrew 10,000 ETH (worth $30.76 million) from Binance.

IntoTheBlock data shows large transactions volume increased by 70.2%, while transactions greater than $100,000 dipped marginally from 3,406 to 3,281. Exchanges netflows spiked 791.5%.

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