Ethereum price is on track to drop for the third consecutive week as the crypto market crash gained steam. ETH token reached a low of $2,000, its lowest level since May last year. It has slumped by over 50% from its all-time high as Vitalik Buterin continued his selling spree.
Ethereum Price Drops as Vitalik Buterin Dumps Coins Amid the Crypto Crash
The value of ETH slumped on Thursday, continuing a downward trend that started in August last year. This retreat happened as the crypto market crash gained steam, with Bitcoin moving below the key support level at $70,000.
Ethereum dropped as Vitalik Buterin, its founder, continued his selling spree. Data compiled by Look OnChain shows that he has sold 2,961 coins worth $6.6 million.
Buterin has also sold more tokens in the past few weeks. For example, he dumped 16,384 ETH coins recently and said that the sales tokens will be used to fund privacy projects in the network.
Still, Buterin is one of the biggest Ethereum holders in the crypto industry. Data compiled by Arkham shows that he still holds 227k coins valued at over $470 million, a sign that he believes that it will rebound.
Buterin has maintained a bullish outlook for Ethereum since he founded it. In a statement on Wednesday, he warned that the network was doing so well that layer-2s would become obsolete.
Other investors are dumping Ethereum as the crypto market crash gains steam. Data compiled by SoSoValue shows that spot Ethereum ETFs have shed over $68 million in assets in February, the third consecutive month of losses. These investors have sold tokens worth over $2.5 billion since November last year.. The funds have had over $11.9 billion in cumulative inflows and hold $12.7 billion in assets.
At the same time, Ethereum bulls are being wiped out as liquidations jump. Leveraged Ethereum bulls lost over $237 million in assets through liquidations in the past 24 hours.
Ethereum Price Prediction: Technical Analysis
The weekly chart shows that the ETH price has been in a strong freefall in the past few months as investors sold in panic and as buyers remained on the sidelines.
ETH price moved below the important support level at $2,125, its lowest level in August and September 2024. This price was the left side of the inverted head-and-shoulders pattern, a common bullish reversal sign.
Therefore, the coin has invalidated the inverted head-and-shoulders pattern, which could lead to more downside in the near term.
At the same time, the Relative Strength Index (RSI) has dropped to 31, while the Stochastic Oscillator has moved to the oversold level.
Therefore, the most likely ETH price forecast is bearish, with the next key target being at $1,500, which is close to the lowest level last year.
On the flip side, a weekly close above the key level at $2,124 will invalidate the bearish outlook and point to more upside because it will confirm the inverted head-and-shoulders pattern.
Source: https://coingape.com/markets/ethereum-price-as-vitalik-continues-to-dump-more-eth-amid-crypto-crash/