Ethereum Price Declines Over 7% as Institutional Demand Weakens
Bitcoin's price drop triggered over $698 million in leveraged liquidations within 24 hours, impacting the altcoin market significantly. Ethereum's price fell by 7% to approximately $3,353, testing a critical support/resistance level with a fully diluted valuation of about $404 billion and a 24-hour trading volume of around $40.4 billion.
Key points include:
- Ethereum shows potential reversal patterns, including a head and shoulders formation.
- Price closed below the 50-day Moving Average, indicating bearish control.
- If bearish sentiment continues, Ether may retest support around $3,100.
- A rebound could lead Ether towards its all-time high.
The upcoming inauguration of US President-elect Donald Trump may increase market volatility, viewed as both a potential sell-the-news event and a bullish turning point for the crypto sector.
Ethereum Foundation Sells ETH
The Ethereum Foundation has sold 4,466 ETH for about $12.61 million in 2024, continuing to reduce its holdings. They currently hold digital assets valued at approximately $915 million, focusing on selling more ETH and Wrapped Ether (WETH).
Additional details include:
- Institutional demand for Ethereum remains low despite the approval of US spot Ether ETFs.
- No net cash inflow was recorded for US spot Ether ETFs on Tuesday, with a total net outflow of about $86.79 million.
- Cumulative total net inflow for US spot Ether ETFs is approximately $2.68 billion, with total assets around $12.28 billion.