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Ethereum (ETH) Price: Tests Critical Support While Whale Profit Ratios Return to Bear Market Levels
- A major Ethereum whale sold 40,000 ETH worth $89.9 million in two days, triggering a 13% price drop to around $2,000 over a week.
- With the weekly RSI at its lowest level since May 2022, possible further decline is indicated, supported by increased exchange deposits of 60,000 ETH in two weeks.
- Analysts draw parallels to 2019 ETH behavior during Federal Reserve tightening, implying a potential downtrend continuation.
- Data suggest a bearish trend as Ethereum whales' profit ratios hit bear market levels despite the higher ETH price compared to the past.
- The bearish sentiment is reinforced by the negative unrealized profit ratio in the 1,000 to 10,000 ETH whale cohort, signaling possible further selling.
- Macro concerns, like Trump's trade tariffs and a looming recession probability, add pressure to the crypto market amidst declining total market capitalization.
- ETH struggles compared to Bitcoin, down 41.6% in the past year, with some analysts noting similarities in price action between the current ETH cycle and the 2019 Federal Reserve tightening.
- Despite the negative sentiment, some analysts stay optimistic, noting historical ETH price behavior around key levels like the 21-Day EMA on the 3-Month chart.
- Technical analysis reflects declining ETH exchange balances - at a 9-year low - potentially supporting price scarcity and hinting at long-term price strength.
- Currently trading around $2,126, ETH faces a critical support test at $2,000, with a potential further downside if breached, while historical patterns and supply dynamics leave room for reversal if market conditions change.
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