Ethereum price has dropped below crucial support levels in the recent past, indicating further midterm weakness.
The crypto market led by Bitcoin (BTC) and Ethereum (ETH) continued in a bearish outlook in the past 24 hours. The total crypto market cap slipped to about $2.39 trillion, thus leading to a forced liquidation of more than $256 million in the past 24 hours, mostly involving long traders.
According to the latest crypto market data, Ethereum price has dropped over 8 percent in the past two weeks to trade around $3,141 on Friday, during the mid-London session.
Consequently, Ethereum price has dipped below crucial support levels, including the daily 50 and 200 Moving Averages (MAs). From a technical standpoint, Ethereum price has been trapped in a falling trend for the past five months, despite establishing a solid support range between $$2,814 and $2,927.
Ethereum Network Registers Heightened Whales Activities
The Ethereum network has become a favorite among institutional investors in the altcoin industry since the approval of several spot Ether ETFs in the United States. Furthermore, the spot Ether ETFs have offered institutional investors an avenue to diversify their respective crypto portfolios.
Since the official approval of the US-based spot Ether ETFs, yesterday was the third day of net cash inflow, with about $26.7 million. Grayscale’s ETHE registered a net cash outflow of about $77.95 million on Thursday, thus currently holding about $6.27 billion in total assets.
BlackRock’s ETHA and Filedilty’s FETH registered net cash inflows of about $89.66 million and $11.70 million respectively. Cumulatively, the US-based spot Ether ETFs have registered a net cash outflow of about $456.43 million, with total assets under management of about $8.72 billion.
Meanwhile, on-chain data analysis shows a whale address, associated with Elwood Technologies, deposited 19,500 ETH units, worth about $63.66 million, to the Binance crypto exchange in the past two days.
Who dumped $ETH causing the price to drop?
We noticed 3 wallets related to #Elwood deposited 19,500 $ETH($63.66M) to #Binance in the past 2 days!
Coincidentally, these wallets deposited $ETH to #Binance every time before the price crashed!https://t.co/ME12Up3BIL pic.twitter.com/9dEbivNWrZ
— Lookonchain (@lookonchain) August 1, 2024
Closer Look at Web3 Activities
The Ethereum network remains a leader in the web3 ecosystem, with more than $56 billion in total value locked and over $78 billion in stablecoins market cap. As the Ethereum ecosystem celebrated its 9th anniversary, co-founder and lead developer Vitalik Buterin proposed several upgrades needed to keep the network highly competitive.
Furthermore, emerging layer one blockchains – led by Solana (SOL) and Toncoin (TON) – have been making significant progress in the web3 space.
Midterm ETH Price Expectations
Despite the rising demand from institutional investors, Ethereum price has continued to consolidate in the recent past, suggesting a sell-the-event narrative. Nonetheless, Ethereum price is expected to break out to its all-time high during the fourth quarter, fueled by the anticipated interest rate cut and general election in the United States.
From a technical standpoint, Ethereum price could drop as much as $2,725 if the support level around $2,927 fails to hold in the coming weeks.
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