In recent days, the overall cryptocurrency market has continuously experienced a downside momentum, with top cryptocurrencies like Bitcoin, Ethereum, Binance Coin, and others experiencing significant declines. Amidst this, an on-chain analytics firm, Spotonchain, made a post on X (previously Twitter), alleging that in the past four days, three smart traders have sold 26,946 Ethereum worth around $95.7 million and made a profit of approximately $39 million.
Why Ethereum price is falling?
However, the actions of these three smart traders raised concern and were also caught after Ethereum’s Dencun Upgrade. They began selling their holdings when Ethereum was trading near $3,733, and since then, Ethereum’s price has fallen by more than 15%. Additionally, the on-chain analytics firm cited the activities of each trader.
It all began on March 15, 2024, when the trader’s wallet address 0xa43 sold 10,776 Ethereum worth around $38.2 million at an average price of $3,544, making a profit of over $9.14 million. However, this trader made a profit of 31.5% on their initial investment.
Another trader, with wallet address 0xebf, took action on March 16, 2024, selling around 8,870 Ethereum for $33.1 million to Binance at an average price of $3,733, and making a profit of over $25.3 million, equivalent to a 55.8% return on their investment.
Meanwhile, on March 19, 2024, the trader with wallet address 0xb82 sold 7,300 Ethereum worth around $24.4 million on Binance, making a profit of around $4.59 million. The actions of these traders may suggest they anticipated Ethereum’s price would fall, but there is no apparent connection between them.
Ethereum technical analysis and key levels
Currently, Ethereum is trading near $3,270, and in the last 24 hours, it has experienced a downside momentum of over 9%. Looking at Ethereum’s performance over a longer period, in the last seven days, its price has fallen by nearly 20%, while in the last 30 trading days, it has surged by over 12%, reaching a high of $4,067 and a low of $2,793.
According to expert technical analysis, Ethereum is looking bearish as it broke down major support levels near $3,500 on a daily timeframe. If the daily candle of Ethereum closes below the $3,300 level, there is a high possibility that its price will hit the $3,050 mark, as the next support level lies there.
