In the previous 24 hours, Bitcoin price ($95,413) led a surprising market downturn across altcoins, causing approximately $698 million in margin calls. Simultaneously, Ethereum price ($3,362) dipped by over 7%, trading around $3,353 during the early New York session on Wednesday. This significant drop for the second-largest cryptocurrency, with a market capitalization of roughly $404.9 billion and a daily trading volume of about $40.79 billion, has it testing a pivotal support or resistance level. The outcome at this critical point will influence Ethereum’s immediate future.
On a day-to-day basis, it appears Ethereum’s price could be shaping up as a potential reversal, possibly forming a head and shoulders (H&S) structure accompanied by a bearish divergence on the Relative Strength Index (RSI). This situation suggests that Ether’s value has dropped below its 50-day Moving Average (MA) for the past two days, which indicates that the bears might be dominating the market.
If there’s more negative market feeling about Ether, it may fall back to approximately $3,100, which is a potential support level. This could then trigger another bullish phase. On the other hand, if Ether bounces back from the current support, it might reach its record high price (all-time high or ATH).
The second inauguration of U.S. President-elect Donald Trump will significantly affect the crypto industry, with increased market volatility. While some may see Trump’s inauguration as an opportunity to sell their cryptocurrencies (a “sell-the-news” event), others might consider it a positive development, signaling a more favorable political climate towards cryptocurrencies in the country.
Ethereum Foundation Leads Whales Selloff
In 2025, the Switzerland-based Ethereum Foundation, a non-profit focused on advancing the Ethereum network through research and development, announced its first significant sale of ETH. This sale followed an earlier transaction in 2024 where they sold 4,466 Ether for approximately $12.61 million. Since then, the Foundation has been gradually decreasing its Ether holdings.
As per the analysis of data from Spot On Chain, it’s currently estimated that the Ethereum Foundation owns approximately $915 million in digital assets. A significant portion of these assets consists of Ether and Wrapped Ether (WETH), with a notable focus on selling more Ether.
The sales by the Ethereum Foundation have occurred at a time when institutional investors’ demand for Ethereum is relatively low. Contrastingly, the amount of Bitcoin available on centralized exchanges has been decreasing steadily over the past few months to levels not seen in years. However, the amount of Ethereum on various centralized exchanges has stayed consistent over the past year, even after the approval of U.S. spot Ether ETFs.
On Tuesday, U.S. Ether ETFs did not receive any overall cash injection but reported an outflow of approximately $86.79 million collectively. This has led to a cumulative total net investment in these ETFs of roughly $2.68 billion, and their total net assets being around $12.28 billion.
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2025-01-08 17:12