Why Ethereum Price is Down Today?
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Ethereum (ETH) is experiencing a decline in price today, largely due to several factors putting pressure on the altcoin. After reaching a high of $4,109 earlier this week, Ethereum’s price has dropped by almost 20%. This downturn is largely driven by continued selling pressure from whales, who have been dumping large amounts of ETH, and many other reasons why.
El Salvador’s Accepts IMF’s DemandsA key development affecting market sentiment is El Salvador’s recent agreement to the International Monetary Fund’s (IMF) proposal. El Salvador’s $1.4 billion loan deal with the IMF requires the country to reduce its Bitcoin policies and taxes will now only be paid in U.S. dollars
Ethereum Foundation & Whale Selling ETHAnother factor contributing to the price drop is the Ethereum Foundation’s decision to sell large amounts of ETH. The Foundation sold 100 ETH, which caused a 17% drop in ETH’s value.
Over the past year, the Ethereum Foundation has sold a total of 4,466 ETH, worth around $12.6 million. This continued selling from the Foundation is a major factor weighing on Ethereum’s price.
Since the #EthereumFoundation sold 100 $ETH on Dec 17, the price of $ETH has dropped by ~17%, marking another successful top sale.
Over the past year, #EthereumFoundation has sold 4,466 $ETH($12.6M) across 32 trades, with 15 of them executed at the top(marked in red in the… pic.twitter.com/DA7nGAgbxr
The market is also facing significant selling pressure from large players. Recently, a whale deposited nearly 50,000 ETH, worth about $170 million, into Binance, triggering fears of more selling.
The whale also withdrew over $137 million worth of stablecoins, indicating a shift in strategy that might have influenced Ethereum’s price.
Ethereum Price AnalysisLooking ahead, Ethereum’s price may test the $3,000-$3,025 range, where support from the 200-day moving average (EMA) could help stabilize it. However, if selling pressure persists, further declines are possible.
Currently, Ethereum is trading around $3,125, reflecting a 15.6% drop in the last 24 hours. Despite this, the $3,250 support level may prevent further declines.