Ethereum’s price has experienced a significant decline, dropping by nearly 10% in the past week and 1% in the past day, reaching a 24-hour low of $2,868. This decrease is more pronounced compared to Bitcoin, which has managed to achieve notable price milestones despite current market conditions.
The downturn in Ethereum’s market performance is attributed to various factors, including significant whale activities introducing volatility and selling pressure into the market. Additionally, indicators suggest a decrease in investor interest in Ethereum, with network activity metrics showing a decline in active addresses and new addresses.
From a technical analysis perspective, Ethereum has broken key support levels on the daily chart, signaling bearish pressure. However, there is potential for a short-term recovery, with liquidity near the $3,200 region possibly leading to a temporary rise above the $3,000 mark before a potential drop to around $2,800.
Furthermore, the recent deposit of Ethereum into exchanges coincides with the activation of two Bitcoin wallets that had been dormant for nearly 11 years. These wallets, each holding 500 BTC, liquidated their entire holdings, adding to the negative sentiment among investors.
In conclusion, Ethereum’s price decline and reduced investor interest suggest a challenging period for the cryptocurrency. It remains to be seen if the market will experience a turnaround in the near future.