Ethereum Price Plummets 5%: Why Is ETH Going Down?

Ethereum's ETH/USD 5% drop on Thursday has sparked speculation among traders about its ability to recover and close above the critical $3,700 mark by year-end.

What Happened: Lookonchain data highlights a skilled whale, possibly associated with LonglingCapital, who purchased 6,000 ETH during a price dip. Known for impeccable timing, the whale has amassed $83 million in profits.

Since May 8, 2023, the whale has acquired 75,400 ETH (worth $180.4 million at an average of $2,392) and sold 50,800 ETH (worth $172.8 million at an average of $3,401).

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Ethereum ETH/USD	$3,612.85	$435.1 billion	-6.7%	-8.9%
Bitcoin BTC/USD	$100,537.58	$1.98 trillion	-3.7%	-1.3%
XRP XRP/USD	$2.32	$132.7 billion	-6.1%	-4.1%

Trader Notes: Trader MaxBecauseBTC, in a recent post on X, outlined two scenarios for ETH holders over the next six months:

• Option A: 5-10x net worth gain (55% probability)
• Option B: 40% net worth decline (45% probability)

Max urges traders to embrace volatility, remain resilient and focus on potential upside rather than fear of loss.

Cold Blooded Shiller highlighted the $3,700 quarterly level as a pivotal resistance point.

With 12 days until the quarter ends, he anticipates a fierce battle to close above it.

While ETH has traded above this level for six quarters, it has yet to secure a close above it.

$ETH Quarterly level around $3700 is a big one.

Another 12 days left till the close here and I suspect it'll be a battle to try and secure a close above.

We've traded above this level for 6 quarters and never managed to get a close above. pic.twitter.com/TMS3O4qgFy

— Cold Blooded Shiller (@ColdBloodShill) December 19, 2024

Trader Ted compared $4,000 resistance to ETH's struggle with $1,400 during the 2020-21 cycle.

He predicts a similar breakout, with a close above $4,100 potentially paving the way to a new all-time high.

Statistics: IntoTheBlock data shows 11.7% drop in large transactions volume and 5.6% fall in daily active addresses. Exchanges netflows are down by 132.2%.

Transactions greater than $100,000 widened from 10,365 to 11,817 in one single day.

Currently, 81% of ETH holders are making profit while 8% are at breakeven.

BlackRock's iShares Ethereum Trust ETHA led with a $80.7 million net inflow on Wedneday, taking total inflows to $3.4 billion.

Read Next: 

• Bitcoin To $180,000, Ethereum Over $6,000, Solana To $500: VanEck’s 2025 Crypto Predictions

Image: Shutterstock