In the midst of market volatility, Ethereum appears to be faltering on the charts following a breach of its crucial support level. This bearish outlook is further underscored by Ethereum co-founder Jeffrey Wilcke, who seemingly offloaded ETH valued in the millions. A report detailing Wilcke’s $5.99 million ETH dump on Kraken. This transaction was documented at a time when the altcoin was hovering around the $3,950 mark.
It’s important to highlight that confirmation is still pending on whether Wilcke has actually sold his ETH holdings, or if he’s merely transferring assets from a wallet to an exchange. This often signals a possible sell-off on the horizon. That’s not all, as simultaneously, whales capitalized on the dip by making significant purchases. Lookonchain has disclosed that 15 wallets acquired 406,117 ETH, totaling $1.6 billion, from Kraken amid the market downturn. Among the wallet holders are Galaxy Digital, BitGo, and FalconX.
In just the past week, ETH has experienced a decline of more than 13% in its value. In the past 24 hours, it has also seen a decline of more than 2%. As a result of these downward shifts, ETH was hovering around the $3,940 mark at the time of reporting. However, an increase in investor participation could soon alter the altcoin’s fortunes. ETH is currently at a critical juncture around $3,900, having lost its robust support level of $4,050 on Thursday. In the wake of this breakdown, sentiment has turned decidedly negative. At press time, if the downward trend persists and ETH’s daily chart finishes below the $3,900 mark, there is a significant chance it could decline by 11.50%, potentially hitting the next support level at $3,400.
It’s important to highlight that the Bollinger Bands indicator has significantly widened, with the price currently positioned at the lower boundary of the bands. This indicated that the asset could be in oversold territory, with a price reversal potentially on the horizon. Conversely, the Average Directional Index has risen to 20, still under the crucial threshold of 25 – A clear indication of sluggish momentum.