As the Bitcoin unwinding continues, the world’s second-largest cryptocurrency Ethereum has been facing an even steeper correction dropping another 7% on the weekly charts. The Ethereum price is trading much closer to the crucial support of $2,300 while the ETH whale selling has continued this week.

Ethereum Price Drop Under $2,300 Can Trigger 30% Crash

Popular crypto analyst Ali Martinez recently reported that $2,300 is a crucial support for ETH Price as 2.77 million addresses collectively purchased 52.65 million ETH. He said that if the bulls manage to defend this support and reverse the ETH trajectory, there’s the chance of another 3x rally from here. However, if the ETH bears manage to break under the $2,300 level, it could lead to another 30% crash all the way to $1,600.

“If Ethereum can hold above $2,300, we may see a new rally that could push the price toward $6,000,” Martinez noted. Thus, it is a make-or-break for the Ethereum price which could be a deciding factor for its future trajectory. As of press time, the ETH price is trading 1.2% down at $2,432 levels with a market cap of $2,422 levels.

On the other hand, following the Dencun upgrade, the Ethereum mainnet fee has touched an all-time low amid a surge in transactions on the Layer 2 platforms. Thus, with fewer fees burned, ETH has once again turned inflationary, reversing its current deflationary trend. This puts Ethereum price at the risk of a rally to $3,000. On the other hand, the continuous sell-off from ETH whales has dampened the market sentiment recently.

ETH Whale Selloff Continues

As per the recent data from Spotonchain, an ETH whale from the ICO era, who initially received 150,000 ETH during the Ethereum ICO, has made another substantial deposit to Kraken. Just four hours before, the whale has transferred 5,000 ETH worth $12.2 million, to the exchange.

The data also shows that over the past 15 days, this whale has deposited a total of 45,000 ETH ($113.3 million) to Kraken at an average price of $2,517. Following these significant transfers, the whale still holds 94,450 ETH, worth around $230 million. Thus, this continuous selling by the ETH whale shows

The Ethereum whale, who received 150K $ETH during ICO, deposited another 5K $ETH ($12.2M) to Kraken just 4 hours ago.

In total, this whale has deposited 45K $ETH ($113.3M) to #Kraken over the past 15 days at an average price of $2,517, leaving 94,450 $ETH ($230M) remaining.… https://t.co/2BLcWey4Kx pic.twitter.com/TnlbdrGV3d

— Spot On Chain (@spotonchain) October 8, 2024

As the sentiment around ETH weakens, investors are moving their money to Ethereum rivals like Sui (SUI), Solana (SOL) and Avalanche (AVAX) in the current market conditions.

On the other hand, inflows into Ethereum ETFs have also slowed down significantly. On Monday, October 7, none of the spot Ethereum ETFs saw any inflows.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.