ETH Price Drop: 8.7M Addresses at Risk
Ethereum (ETH) is struggling to maintain prices above $1,800, as investors shift capital towards Bitcoin (BTC), which recently surpassed $84,000. This downturn is fueled by regulatory uncertainty and weakening institutional demand.
Why is the Ethereum Price Falling?
The primary driver of Ethereum's decline is growing doubt surrounding US regulatory developments. The nomination of Paul Atkins as SEC chair, initially welcomed by the crypto community, faces congressional opposition due to potential conflicts of interest. This uncertainty threatens pro-crypto policies, potentially delaying or even rejecting proposals like the inclusion of ETH in the Crypto Strategic Reserve.
Consequently, traders are moving from ETH to Bitcoin, seen as a safer haven amidst regulatory ambiguity. Spot market liquidity for ETH has also decreased by 26% in 24 hours, indicating weak buying pressure.
8.73 Million Ethereum Addresses Face Potential Losses
On-chain data reveals a worrying trend. According to IntoTheBlock, 8.73 million ETH addresses holding a combined 3.61 million ETH are at risk of losses if the price falls below $1,600. This accumulation zone lies between $1,596 and $1,790.
A breach of $1,600 could trigger significant sell-offs, exacerbating the downturn. The lack of buying interest suggests traders are awaiting clearer regulatory signals or a deeper correction before re-entering the market.
ETH Price Forecast: Risks Below $1,750
Ethereum's price remains precarious, currently trading at $1,808.82. Technical indicators point to further downside risks. The daily chart shows a sustained bearish trend, with ETH struggling below key resistance levels. The ADX breakout at $2,212 represents significant resistance, and ETH’s inability to reclaim this level confirms a lack of bullish momentum.
The MACD indicator is also bearish, with the MACD line (-98.38) significantly below the signal line (-105.99), highlighting persistent downward momentum. A drop below $1,754 could trigger widespread liquidations, pushing ETH towards the critical $1,600 support level, putting millions of addresses at risk.
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Frequently Asked Questions (FAQs)
- Why is Ethereum's price declining? Regulatory uncertainty, institutional selling, and a shift in investor sentiment towards Bitcoin are contributing factors.
- What is the outlook for Ethereum's price? A recapture of $1,850 is crucial for a potential move towards $2,000. However, weak momentum suggests further downside risks.
- What are the risks associated with the current price levels? If Ethereum drops below $1,600, millions of addresses could incur losses, potentially triggering a sharp sell-off.
Disclaimer: This analysis reflects the author's opinion and is subject to market conditions. Conduct thorough research before making investment decisions. The author and Codeum assume no liability for personal financial losses.