Ethereum breaks key support levels, raising fears of deeper price correction ahead.
Ethereum price today fell below its two-week low and is now trading around $1,877, dropping nearly 5.6%. The price drop has also triggered massive liquidations. As the Ethereum price saw liquidations worth over $115 million after falling below $1,900.
The sudden drop has increased concern among investors, as selling pressure continues to rise from multiple sides.
Ethereum co-founder Vitalik Buterin has been selling Eth continuously. As in the past two days alone, Buterin sold around 1,869 ETH worth $3.6 million. Following this sell-off, the Ethereum price fell from $1,988 to below $1,880, reflecting a drop of 5.7%.
This is not the first time his selling has impacted the market. Earlier this month, he sold 6958 ETH worth around $14.78 million, and the Ethereum price dropped by 22.7%.
In total, Buterin has sold around 8,800 ETH in February, worth over $16.53 million at current prices of $1879. Some experts believe that these sales may be part of normal financial planning.
Well, it’s not Buterin who is selling. Large Ethereum whales are also offloading huge amounts of Ethereum coin. One OG Ethereum investor recently deposited over 14,183 ETH worth ($42 million) into Coinbase after holding it for nearly 9 years.
Apart from this, whale wallets holding between 100,000 and 1 million ETH have sold around 1.43 million ETH, roughly ($2.7 billion) in the past two weeks. This equals roughly $2.7 billion, showing that major investors are reducing their positions.
This kind of whale sell-off means that major investors are reducing their positions, which indirectly push price down.
Looking at the ETH weekly chart, the Ethereum price has broken below key Fibonacci support levels. So, if the ETH price falls below $1,800, the next major support is around $1,573, a level where strong buying happened before.
In a more bearish scenario, the price could drop further toward the $640 zone. This level could mark a full market reset, where weak hands exit and large buyers enter.
If this happens, it may create a strong long-term accumulation opportunity before the next major rally begins. This could lead to a long-term target near $10,048.
Read more on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
