Ethereum Tests Critical $3,400 Support as Whales Move $370M to Exchanges
- Ethereum drops 12.44% in seven days, breaking below $3,500
- Major whales deposit over $370M worth of ETH to exchanges
- Technical analysis suggests possible test of $3,000 level
Ethereum faces a crucial test of market confidence as its price retreats below the psychologically important $3,500 level, coinciding with Bitcoins drop under $96,000. This correction has triggered significant movements among major holders and institutional investors, potentially setting the stage for further price discovery.
Ethereum Technical Picture Unfolds
The triple black crow pattern on the daily chart tells a compelling story about the current market structure. This bearish formation, combined with the breach of the 50-day EMA, suggests mounting selling pressure.
The price has already tested the 78.60% Fibonacci retracement level at $3,553, with the current price of $3,404 representing a critical juncture for market direction.
The daily RSIs movement below the centerline adds technical validation to the bearish narrative, indicating that momentum has shifted in favor of sellers. This technical damage becomes particularly significant when viewed alongside the substantial ETF outflows, with Grayscale alone accounting for $58.13 million in selling pressure.
The response of large holders to this market correction provides fascinating insight into institutional sentiment. While Donald Trumps World Liberty Finance demonstrated confidence by acquiring 722 ETH ($2.5 million), other major holders have taken a more cautious approach.
Three significant whale movements to Binance, totaling approximately $370 million worth of ETH, suggest preparation for potential further downside.
The convergence of technical weakness, institutional outflows, and whale movements creates a challenging environment for price support. The 200 EMA at $3,035 represents the next major technical level, with the 50% Fibonacci retracement at $2,942 offering potential support should selling pressure persist. However, any broader market recovery could drive a retest of the 78.60% Fibonacci level at $3,530.
Read more: https://thenewscrypto.com/ethereum-tests-critical-3400-support-as-whales-move-370m-to-exchanges/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
