Ethereum’s Dramatic Plunge: Will the Bulls Save the Day or Just Moo? 🐂💸

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Ah, yet another bullish escapade in the world of Ethereum, which has now taken a rather unfortunate tumble. The current state of affairs reveals that ETH is languishing at a rather dismal $2,393, with a 24-hour volatility that could make even the most seasoned investor clutch their pearls at 11.5%. The market cap, a staggering $288.79 billion, seems to be a mere shadow of its former self.

As we witness this breakout attempt dissolve into a steep correction, one cannot help but wonder if the bulls can muster the strength to defend the $2,300 mark, or if we are simply witnessing the prelude to a more catastrophic decline. The price trend is currently flirting with a three-month low, and one might say it’s on sale at a delightful 40% discount—if only one could find a buyer!

Ethereum Plummets 40%: Is There More Pain in Store?

In the daily chart, the ETH price trend reveals a dramatic descent, akin to a tragic hero falling from grace. Having plummeted from its previous swing high of nearly $4,000, Ethereum now finds itself in a precarious position, trading at a mere $2,410 after an intraday drop of 4.18%. This follows a rather disheartening 10% crash just last night—oh, the humanity!

With two bearish engulfing candles lighting the way, Ethereum has decisively broken below its February consolidation range, signaling a renewed bearish pressure that could make even the most optimistic investor weep. The lower support trendline has been nearly retested, with a 24-hour low at $2,398. It’s a veritable rollercoaster of emotions!

As selling pressure mounts, the 100 and 200 EMA lines are poised for a bearish crossover, while the daily RSI line has taken a swift detour from the halfway mark, now nearing the oversold boundary. One might say it’s a classic case of “too much, too soon.”

While the lower price rejection in the channel hints at a potential comeback, the broader market sentiment looms ominously, threatening a breakdown that could lead to a steeper correction. Buckle up, folks!

Whales Gather as Ethereum Takes a Dive

In a twist of fate, Kate Young Ju, an Altcoin Data Analyst, has pointed out some silver linings amidst the gloom. Whales, those magnificent creatures of the crypto sea, are reportedly accumulating Ethereum. Perhaps they see something we do not?

Live Dashboard 👇

— Kate The Alt (@kate_young_ju) February 25, 2025

The cost basis for accumulating addresses has dipped to $2,199, while the current market price hovers around $2,400. Addresses holding between 10,000 to 100,000 ETH have surged by 24% over the past year, primarily fueled by inflows from wallets holding less than 1,000 ETH. It seems the little fish are swimming with the big ones!

CryptoQuant CEO Sheds Light on Bullish Ethereum Factors

Adding to the chorus of optimism, Ki Young Ju, the founder and CEO of CryptoQuant, has highlighted some key factors that could potentially turn the tide. Notably, no significant selling pressure emerged after the last private hack—an unexpected twist in this drama!

Some bullish thoughts on $ETH:

1/ No significant sell pressure post-Bybit hack. On-chain and market data remain neutral. Exchange selling takes time, and OTC offloads barely affect the price.

2/ Ethereum holds 56% of the stablecoin market cap. With Trump easing crypto regs,…

— Ki Young Ju (@ki_young_ju) February 25, 2025

Furthermore, Ethereum commands over 50% of the stablecoin market cap, which could benefit from potential pro-crypto regulatory shifts in Donald Trump’s second term. Who knew politics could be so intertwined with crypto?

As more firms enter the crypto space, the demand for Ethereum-based stablecoins and smart contracts is likely

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2025-02-25 12:54