The recent ‘Black Monday’ stock market crash has sent shockwaves through the crypto markets, causing major disruptions in the prices of top cryptocurrencies. Bitcoin saw a significant drop below $75,000, while Ethereum experienced a steep decline of $1500 after holding steady for over two years. This sudden downturn in prices has led to panic among investors, triggering a massive sell-off and prompting big whales to liquidate substantial amounts of ETH. As a result, the market is now facing the possibility of entering a bear market.
One of the most concerning developments is the massive liquidation of ETH holdings by whales. Reports indicate that a whale recently sold off 67,570 ETH, amounting to over $106 million at an ETH price of $1,650. Another whale, who previously held more than $22 million worth of ETH, has converted all their holdings into stablecoins. This move has raised concerns among market participants and has sparked speculation about the future direction of ETH prices.
In a recent update, a whale with 220,000 ETH and over $340 million in holdings repaid 3.52 million DAI and deposited 10,000 ETH, effectively lowering the liquidation price to $1,119.3. This move has set off alarms within the market, as a drop below the liquidation price could result in the liquidation of all 220,000 ETH. Additionally, another whale is considering liquidating more than 15,000 ETH if they are unable to increase collateral or repay their debt. The outflows of over 26,230 ETH from the spot ETH ETF, amounting to over $50 million, further support the bearish sentiment in the market.
Amidst these developments, there is growing concern about whether Ethereum’s price will drop below $1000. The recent market dynamics have caused ETH to break below key support levels that have been in place since 2020. The lack of bullish momentum and the ongoing selling pressure suggest that the bearish trend may continue. The price of ETH is now approaching a crucial support level near $1400, which corresponds to the 2018 highs. A breach of this level could lead to a significant downward movement in prices. The weekly RSI indicator has dropped to a critical level, indicating that a drop below $1000 for Ethereum’s price could be imminent.
Overall, the current market conditions and whale activity in the ETH market point to a challenging period ahead for Ethereum and the broader cryptocurrency market. Investors are advised to closely monitor price movements and stay informed about any significant developments that may impact the market.