Ethereum Price Faces Potential Drop to $2,500 Amid Wintermute's Continued Sell-Off

Ethereum's value fell below the critical $3,000 support level, marking a ~40% decline from its peak this year. The bearish trend is expected to persist due to a negative pattern formation and ongoing sales by Wintermute.

Ethereum Price Under Pressure from Wintermute's Selling

The ETH price decline is exacerbated by reduced demand and significant sales from major investors, notably Wintermute, which has offloaded millions of tokens, raising market manipulation concerns.

Wintermute's recent transactions show over $17 million worth of tokens sold in just four hours.

Other major firms, including ETF giants like BlackRock, Grayscale, Fidelity, and Bitwise, have also reduced their Ethereum holdings, largely due to ongoing Ethereum ETF outflows.

According to SoSoValue, spot Ethereum ETFs recorded outflows of $416 million this month and $1.42 billion in November, reducing total inflows to $12.5 billion from a high of over $15 billion.

Meanwhile, Ethereum futures open interest has decreased sharply, from over $60 billion to $39 billion, indicating reduced leverage in the crypto sector.

Technical Analysis of ETH Price

The daily chart shows Ethereum's price has plummeted since August, reaching a low of $2,622 on November 21. A death cross pattern has emerged as the 100-day and 200-day EMAs intersected.

The price has breached the 50% Fibonacci Retracement level and is forming a bearish flag pattern, suggesting further declines. The next target is $2,622, with a potential drop to $2,500 if this level is breached.

A reversal of the bearish outlook requires Ethereum to surpass the 200-day moving average at $3,400.