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

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Zinger Key Points

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).

CryptocurrencyPrice   Market Cap24-Hour Trend7-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.

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.

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Image: Shutterstock

Got Questions? Ask
Which crypto funds may benefit from ETH drops?
How could LonglingCapital's strategy impact ETH?
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