NewsletterEthereum Price at Risk of $2,600 Crash As 110K ETH Floods Exchanges
Highlights
- Ethereum price risks correction due to increased selling pressure and profit-taking.
- 110,000 ETH floods exchanges, potentially triggering a selloff.
- ETH price may drop to $2,600 or lower if bearish trends continue.
Amid bearish crypto market conditions, Ethereum’s price risks a steep correction due to a spike in ETH held on crypto exchanges and an uptick in profit-taking. If this selling pressure continues to increase, ETH could drop as low as $2,600.
Let’s examine technical and on-chain analysis to determine Ethereum’s (ETH) health and what’s next.
Ethereum Price Risks Correction As 110,000 ETH Flows to Exchanges
Ethereum price has crashed 25% from its yearly high of $4,107 but has recovered to $3,358, where it currently trades. Since ETH trades between two key make-or-break hurdles at $3,613 and $3,029, there is no directional bias yet. If ETH overcomes the former hurdle, it could kickstart a rally to the upside. On the other hand, a breakdown of $3,029 could result in a crash.
Considering the supply of Ethereum held on exchanges has seen an uptick of 110,000 ETH, a potential selloff could be around the corner. Typically, an increase in ETH held on centralized platforms could be for selling, aka booking profits or as collateral. This metric increases during the cycle top as more investors want to book profits. The supply held on exchanges reduces at the bottom as investors do not look to sell and instead secure their holdings on cold wallets.
As a result, ETH prices could continue to decline in the near future.
Ethereum Whales Book Profit After Recent Crash
The Network Realized Profit/Loss indicator saw massive upticks on December 23 and 26, suggesting massive profit-taking activity from holders. Positive spikes note profit-taking and negative spikes indicate capitulation.
If NPL is negative after a crash, it indicates that investors are capitulating and is a good area to buy. On the contrary, a positive spike after a drop suggests that holders are not confident in a future rally and are expecting a further decline in Ethereum prices.
All in all, Ethereum price prediction suggests that a drop is likely. As noted, Ether needs to break the $3,029 support level to kickstart a correction that knocks it down to $2,600. Supporting this bearish outcome is ETH flooding on exchanges and profit-taking activity.
Frequently Asked Questions (FAQs)
1. Why is Ethereum's price at risk of correction?
2. What is the significance of the 110,000 ETH flowing into exchanges?
3. What are the key support and resistance levels for Ethereum's price?
- ETF Expert Nate Geraci Says Bitcoin Still Lacks Proof of Digital Gold Status
- Pi Network Update: Team Launches AI Tools to Boost KYC and Mainnet Migration for Investors
- U.S. SEC’s Crypto Task Force Sets Dec. 15 for Privacy Roundtable After Previous Delay
- Grayscale Files S-1 for New SUI ETF After 21Shares’ Successful First Fund Launch
- Do Kwon Faces Up to 12 Years in Prison Over ‘Colossal’ Role in $40B TerraUSD Collaps
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
- Is Cardano Price at Risk of a 50% Crash Ahead of the Midnight Launch?
- Is Chainlink Price Headed for $20 as Reserves Pass 1M LINK?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
