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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 Demands
A 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 ETH
Another 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.
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 Analysis
Looking 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.
