Ethereum faces selling pressure and critical levels. With liquidations intensifying and market volatility rising, will ETH avoid a sharp collapse or is a new opportunity on the horizon?
In recent days, the movements of traders controlling a significant portion of the Ethereum supply, known as whales, indicate a potential selling movement. If this massive sell-off materializes, the price of ETH could significantly drop.
Furthermore, a 125,603 ETH contract (worth $229 million) is at risk of forced liquidation if the ETH price reaches certain thresholds. Such a cascade of liquidations could trigger panic in the market, prompting traders to open more selling positions. Additionally, spot investors may sell their ETH to avoid the downward spiral.
Data shows that large traders have traded $1.87 billion of ETH in the last 24 hours. The market is likely dominated by crypto whales selling their holdings, leading to a 1.85% drop in the ETH price over the same period.
Source: Arkham Intelligence
Furthermore, the analysis of upward resistance levels shows that between $1,857.97 and $1,963.02, a total of 7.89 million ETH of potential sells from 5.82 million addresses could constrain any upward movement or even force the price lower. With more bearish scenarios than bullish ones, the downside risk of ETH appears higher than its upside potential.
Source: IntoTheBlock
While Ethereum is a promising long-term asset, the current market conditions seem unfavorable in the short term. The massive sell-offs by whales, the risks of liquidation, and the upward resistance pose a serious threat to the ETH price. Investors must remain cautious and closely monitor the evolution of these factors.
If you are considering buying Ethereum (ETH), the WEEX platform allows you to do so easily.
Prior to any investment, it is always recommended to stay informed about the market conditions and the risks involved. Above all, never invest more than you can afford to lose.
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