Ethereum price is up 2.19% over the past 24 hours, trading at $2,433, and its market cap is $292.9 billion, up 2.17%.
Fears over whale sales in ETH pushed prices lower yesterday, after a whale sold 45,000 ETH $113.3M over 15 days, while the whale remains in possession of 94,450 ETH $230M. Ethereum’s fundamentals with EIP-7781 upgrade continue to make the $2,400 support level key..
ETH Whale Selling Continues Amid Market Uncertainty
As it finds itself unable to avoid a double digit loss against the US dollar, Ethereum has been decimated further by a major ETH whale offloading large sums of the asset. This whale has been feeding the Kraken exchange for the last 15 days, moving 45,000 ETH, or $113.3M. Those transactions had an average price of $2,517 per ETH.
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These vast transfers on the whale’s balance sheet aside, the whale continues to own 94,450 ETH worth about $230 millionon.
In addition to the uncertainty surrounding Ethereum’s price this selling activity, alongside the uncertainty surrounding Ethereum’s price has taken market sentiment down a notch and traders are in a cautious outlook.
Ethereum’s Fundamentals Strengthened by EIP-7781
EIP-7781, proposed by developer Ben Adams, reduces block times to 8 seconds from 12 seconds, reducing transaction confirmations 33%.
Additionally, the proposal increases the data capacity of the network by 50 percent so that there can be more transactions at a lower cost, as Ethereum is pursuing rollup-centric scalability.
Some key Ethereum people, like researcher Justin Drake have been pushing for EIP-7781, which would be 1.22x more efficient for decentralized exchanges like Uniswap and could save $100 million in arbitrage costs per year.
By improving trade execution, more users will join the Ethereum network and put more upward pressure in the ETH prices.
Ethereum Faces Key Support at $2,400
The price of Ethereum (ETH) is at $2,400 a key level, giving the world second largest cryptocurrency by market cap a pivotal point. The token can rally by 16%, if it goes above this level, which might push the price up to $2,800.
However, if Ethereum fails to get above that point, the price could decline 8%, dropping all the way down to $2,200, revealed by double bottom
This is essential, because as the price of Ethereum rallied to $2400, 2.77 million wallets bought 52.65 million ETH. The $2,400 level is therefore a key battleground between bulls and bears, a drop of which could precipitate more market declines.
Ethereum’s Future Remains Uncertain
ETH whales are selling off, the price action is weak, which means Ethereum’s near term future is in doubt. As ETH got deflationary 4 months back with the Dencun upgrade slashing mainnet fees, this reversed it back to inflationary. Therefore, it is possible that Ethereum’s price continues to descend or struggles to get above key resistance levels.
Looking into the future, since Ethereum is facing all these headwinds, everyone is looking to see if the $2,400 support level will hold or not, it will be deciding the Ethereum ride for the coming days.
