Economic tensions continue to weigh heavily on the crypto market, with tariffs imposed by the Trump administration causing declines in many altcoins, including Ethereum. The second-largest cryptocurrency is currently facing challenges and is trading in a bearish zone. Analysts suggest that Ethereum’s price may remain range-bound as long as these economic conditions persist. Despite this, there is hope for a potential recovery on the horizon, as large investors are increasing their holdings, even though Ethereum has dropped below the $1,500 mark.
Ethereum’s price recently dipped below $1,500 due to the increased bearish pressure brought on by Trump’s tariff announcement. This has led to a significant sell-off, with approximately $78.8 million worth of Ethereum being liquidated, according to data from Coinglass. Of this amount, $48.1 million came from buyers and $30.6 million from sellers closing their positions. Despite the bearish market conditions, Ethereum holders are standing firm and not rushing to sell their holdings.
One notable investor who recently reactivated their wallet is currently sitting on an unrealized profit of around $12.3 million, despite having reached over $45 million at Ethereum’s peak in 2021. This investor did not sell at that time, and even in the current bearish market, whales are not showing any inclination to sell.
According to data from IntoTheBlock, the volume of large transactions in Ethereum has surged by nearly 520%, as whales are buying more Ethereum while its price remains below $1,500. The total value of these transactions has jumped from $1.58 billion to over $9.8 billion. This indicates that whales are actively accumulating Ethereum during this price dip, potentially laying the groundwork for a price rebound.
On the flip side, Ethereum’s MVRV ratio has seen a significant decline recently. IntoTheBlock data shows that the Ethereum MVRV currently stands at 0.76, the lowest since December 2022. A level below 1 suggests that the market value is lower than the last realized value of Ethereum, indicating significant unrealized losses across the Ethereum network. This level was last observed during the market crash of late 2022.
Looking ahead, Ethereum’s price has been on a sharp decline, breaking below immediate support levels and now aiming for a drop towards the Fibonacci channel. While buyers are trying to stage a rebound, sellers are keeping the price within a bearish territory. As of the latest data, ETH is trading at $1,458, marking a decline of over 6.6% in the last 24 hours.
The ETH/USDT trading pair is currently hovering just below the EMA20 trend line, which could pose a significant challenge. If Ethereum can maintain above this level, it could be bullish for buyers, potentially pushing the price towards the descending resistance line. A breakthrough above that level could propel the ETH price towards $2,000.
However, if the price fails to hold above the EMA20 trend line on the 1-hour chart, sellers might drive it down towards $1,300. Further bearish pressure could see Ethereum trading around the $1,000 mark. Overall, the market remains uncertain, with both bullish and bearish scenarios in play for Ethereum’s price trajectory.