Crypto: Ethereum Plunges, Whales And ETFs Break Investors' Morale

The crypto market has just suffered another major setback. And like most other cryptos, Ethereum has experienced a dramatic drop. Indeed, the second-largest crypto by market capitalization plummeted by 9% in just 24 hours, though it has been trying to recover since. This plunge, driven by massive sales from large holders and ETF investors, adds pressure to an already fragile market.

The role of large holders and ETFs in the drop

The Ethereum price has dropped again, largely due to massive sales orchestrated by whales. In recent hours, these large holders have multiplied sales, transferring significant volumes of ETH to centralized platforms to liquidate their positions. For example, a whale withdrew 5,088 ETH from Binance, estimated at $17.24 million, before selling them for only $13.58 million, marking a notable loss of $3.66 million. Similar moves have seen whales collectively selling thousands of ETH to avoid liquidation on lending platforms like Aave.

Meanwhile, Ethereum ETFs are going through a difficult period with net outflows reaching $13.2 million over eight consecutive days. Major funds like Grayscale (ETHE), Fidelity (FETH), and Franklin (EZET) have been hit hard, reflecting a loss of confidence among institutional investors. This massive withdrawal from ETFs further increases the selling pressure and illustrates growing short-term distrust towards ETH.

Vitalik Buterin and the crypto community at a decisive turning point

The reaction of the crypto community was swift, and doubts about Ethereum’s future are mounting. Part of this crisis of confidence is directed towards the project’s key figures, notably Vitalik Buterin. Critical voices have emerged, accusing Buterin of not believing enough in ETH as a store of value. These accusations highlight underlying frustration about the current crisis’s management and the platform’s strategic direction. However, Vitalik Buterin has defended his position by stating that he holds 90% of his wealth in ETH, thus underscoring his personal commitment to the network’s future.

From a technical standpoint, the signals are mixed but indicate a possible continuation of the downward trend. The RSI (Relative Strength Index) has crossed below its moving average, revealing increasing selling pressure. The stochastic oscillator continues to show signs of weakness but could provide an opportunity for buyers if ETH reaches the oversold zone. Currently, Ethereum’s price remains vulnerable around $3,460, with risks of slipping to support between $2,000 and $2,300.

The uncertainty is palpable, and the market is waiting for the next developments to determine whether Ethereum will manage to rebound or continue its decline, waiting to perhaps surpass Bitcoin as an expert recently predicted.