The crypto market has been in a state of flux in recent days, with Ethereum experiencing a significant price correction that has seen its value drop from a high of $1,710 to a low of $1,460 in the past 11 days.
This sudden and steep decline has been the talk of the town among crypto investors and traders, who are trying to understand the underlying causes of this correction.
Whales Appear to Sell Ethereum
While market conditions can play a significant role in price corrections, the behavior of Ethereum whales can be a key factor.
On-chain data shows that during this 11-day period, whales holding between 100,000 to 1,000,000 ETH sold or redistributed approximately 350,000 ETH, worth $560 million. This massive outflow of Ethereum could have significantly impacted the price correction that the asset has experienced.
The recent price correction has placed Ethereum in a precarious position, as evidenced by IntoTheBlock’s Global In/Out of the Money Around Price (GIOM) model.
The model reveals that the second-largest cryptocurrency by market cap has lost a crucial area of support at $1,600 and now faces a significant challenge in terms of recovering from this decline. The next significant support area sits at $1,330, where over 6.18 million addresses had previously purchased 12.63 million ETH.
However, all is not lost for Ethereum just yet. To end the current downtrend, Ethereum price needs to rebound quickly and reclaim the $1,600 barrier as support.
This could be a turning point for ETH price and potentially set the stage for a climb toward the $2,000 mark.
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