- Ethereum price is expected to fall to $1,400, unless the $1,850 price level is flipped into support.
- Ethereum large wallet holders have exhibited some selling while some whales have been acquiring this sold supply.
- This stability of the network was also questioned this week after ETH faced finality issues for nearly half an hour on two separate occasions.
Ethereum price drawdown came to a halt earlier this week as the crypto market has receded from greed to return to a neutral state. This is also resulting in a slower recovery being expected out of altcoins since Bitcoin’s dominance is still high.
Ethereum price might fall to this level
Ethereum price action had investors concerned across the market. However, popular trader Cryptonary stated that the smartest people knew what they were doing since they were one of the biggest investors.
This cohort is the whales and especially those who hold more than 10,000 ETH. Some of these investors began selling this week. The wallets holding between 10,000 ETH to 100,000 ETH sold nearly 800,000 ETH worth $1.45 billion to bring their balance to 28.38 million ETH.
Ethereum whales’ activity
The network faced some finality issues over the last two days, which inherently impacts the on-chan transactions and investor participation. Earlier this week, the finality had to be halted for about half an hour, which impacted the rotation of the altcoin and, at the same time, justified the networks’ stability as being a key feature.
Looking at the broader market conditions, an alt season in the current market has been out of the question for some time now. The only reason behind making this journey for the altcoin was until the broader market recovered.
This may not be soon as the state of the crypto market further justifies a possible drop in ETH to $1,400. The decline would most likely occur unless $1,850 happens to turn into a support floor, in which case an uptick could be the way to go for the Ethereum price.
However, not all aspects of the cryptocurrency are bearish. While the whales are selling, large wallet holders holding 100,000 ETH to 1 million ETH are acquiring the supply dumped by retail investors. In the same duration, close to 400,000 ETH worth over $700 million has been picked up by these investors, bringing their holdings to 20.72 million ETH.
The altcoin is finding more bullishness in the fact that over 20 million ETH has been staked to date, and another 3.5 million ETH burnt from the supply. This is positive because it triggers the deflationary discussion, making Ethereum one of the more sought-after cryptocurrencies.
Ethereum staked to date
If further bullish cues are observed in the next few weeks, Ethereum price might initiate a recovery, or else a dip to $1,400 is inevitable. The latter would be a 23.43% crash and the biggest altcoin in the world would fall back down to mid-January prices, registering a four-month low.
ETH/USD 1-day chart
Thus, any trader looking to invest in ETH should keep an eye on Ethereum price fluctuation as well as the broader market.
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