Ethereum, one of the top cryptocurrencies, has experienced a significant drop today—raising concerns about its near-term outlook. Within just 24 hours, the ETH price fell by 4%, unsettling investors. With key indicators flashing red and unusual wallet activity triggering alarms, the critical question emerges: Will it rebound or continue declining?
Why Is Ethereum Falling? Key Reasons Behind the Drop
The price has plummeted to $1,572.69**, marking a **4.18% decline** over the past day. According to CoinMarketCap, its market capitalization now stands at **$190 billion, while daily trading volume dropped by 9% to $13.7 billion.
For holders, this sudden dip is both alarming and confusing. Is this a minor correction or the start of a steeper crash?
3 Major Reasons for ETH’s Price Decline
Bearish Technical Indicators
- MACD: The blue line remains below the orange line, signaling a sustained downtrend.
- RSI: At 39, ETH is nearly oversold, indicating heavy selling pressure without matching buyer demand.
Suspicious Wallet Activity
- Lookonchain reported that 5 wallets used $4.28M in ETH** to purchase **611B $PEPE tokens.
- These wallets withdrew ETH via Tornado Cash (a mixer linked to illicit activities) 15 days prior, sparking panic about potential market manipulation.
Weak Support Levels
- ETH is teetering near $1,520**. A breakdown could trigger a nosedive to **$1,400.
- Resistance sits at $1,650—a key level for any recovery.
Ethereum Price Prediction: What’s Next?
Short-Term Scenarios
- Bearish Case: Continued selling may push ETH to $1,480–$1,520.
- Bullish Rebound: If buyers defend $1,520**, a rally to **$1,620–$1,650 is possible.
- Market Recovery: Improved sentiment could gradually lift ETH back to $1,800–$2,000.
Analyst Insights
Crypto analyst Ali Charts noted an ascending triangle breakout on ETH’s hourly chart, hinting at a potential short-term reversal. However, broader risks remain:
👉 Track ETH’s real-time price action here
FAQs: Ethereum’s Price Drop Explained
Q1: Will Ethereum recover soon?
A: Recovery hinges on holding $1,520 as support. Breaking below it may extend losses.
Q2: Is Tornado Cash activity affecting ETH’s price?
A: Yes. Large, anonymized transactions erode trust, prompting retail sell-offs.
Q3: Should I buy ETH now?
A: Monitor the $1,520–$1,650 range. A confirmed rebound above resistance could signal entry opportunities.
Final Thoughts
This isn’t just a routine correction—it’s a warning. Technical weakness, shady transactions, and panic selling suggest deeper risks. Stay cautious.
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