Ethereum (ETH), the world’s second-largest cryptocurrency, is facing a challenging time with a significant price drop in the past 24 hours. On March 4, 2025, Ether experienced a 12% decline, breaching a crucial support level that had been holding strong since December 2023.
Technical Analysis and Price Levels
The recent breakdown has shifted market sentiment towards a bearish outlook for ETH. Expert technical analysis indicates that ETH is currently bearish as it has fallen below the critical support level of $2,200. This breach has opened the door for further price declines in the near future.
Based on recent price movements and historical momentum, if ETH closes a daily candle below the $2,065 level, there is a high likelihood that it could drop by 26% to reach the next support level at $1,500 in the coming days. The altcoin has also moved far away from the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling a downtrend.
Bullish On-Chain Metrics
Despite the bearish price action and ongoing price decline, there are positive signs in on-chain metrics. Whales and long-term holders are actively accumulating ETH, as reported by on-chain analytics firm CoinGlass and blockchain-based transactions tracker Lookonchain.
Whales have recently purchased $10.40 million worth of ETH, with a crypto whale known as 7 siblings acquiring 4,993 ETH at an average price of $2,075. This significant accumulation has boosted the whale’s ETH holdings to 1,157,000 ETH worth $2.4 billion across two wallets. This follows their previous purchase on February 25, where they spent $28.75 million and bought 12,070 ETH at an average price of $2,382.
In addition to whale accumulation, long-term holders have also been active in accumulating ETH. Data from spot inflow/outflow shows that exchanges have witnessed a $130 million outflow of ETH in the past 24 hours, indicating a potential accumulation trend.
Current Price and Trading Volume
Despite the accumulation and outflow trends, ETH is currently trading around $2,070, experiencing a price drop of over 12% in the past 24 hours. However, trading volume has also dropped by 12% during the same period, suggesting lower participation from traders and investors possibly due to significant price fluctuations.
In conclusion, while Ethereum is facing a challenging period with a notable price drop, the accumulation by whales and long-term holders indicates underlying confidence in the asset. The upcoming price levels and market sentiment will be crucial in determining the future trajectory of ETH in the cryptocurrency market.