Ethereum Price Breaks Under Crucial Supports and the $3,000 Mark as the Crypto Market Collapses. Will the Downfall Hit $2,600 this Sunday?

With a bullish end last Sunday and a 1.75% jump, Ethereum holders did not expect a crash this week. However, with the release of the Mt. Gox Bitcoin payout

The Ethereum price fell sharply on Sunday evening as the crypto market sell-off continued. The world’s second largest cryptocurrency dropped below the crucial $3,000 mark, increasing the likelihood of a sell-off towards the $2,600 levels.

After rising bullishly last Sunday with a 1.75% gain, Ethereum holders did not expect a crash this week. However, with the release of the Mt. Gox Bitcoin payout, the crypto market crashed to crucial levels.

The release of huge payouts from the 2014 security of Mt.Gox increased the supply pressure in the broader market. With such a huge supply coming into the market, the demand for all the major altcoins, meme coins, AI tokens, etc., crumbles away.

While buyers struggled to absorb the incoming sell pressure, the biggest altcoin, Ethereum, dipped below the $3,000 milestone. So, will the Ethereum price prediction of reaching $10,000 be true, or will this crash lead to a revised market prediction?

Ethereum Price Performance

Observing a landslide moment, the Ethereum price fall struggled to find an area of support in this market crash. As the HODLers continued to expect a halt shortly, the ETH price broke below the $3,000 mark.

TradingviewWith a 16.42% drop this week, the bearish patterns and signals overwhelmed the Ethereum price chart. The overpowered bears began the bloodbath with the evening star formation for a range breakdown retest at $3,460.

With a 16% drop in 4 days, including the 6% intraday fall, the ETH price broke under the long-coming support trendline. Amidst the fall, major altcoins and meme coins like Solana, DOGE, SHIB, etc., witnessed a 15% or more downfall this week.

With increased momentum, the trendline breakout plunged Ethereum to the next support level of $2,875. Further, the downfall ignited a bearish phase in the MACD and signal lines under the zero line.

Whale Activity Triggers Ethereum Price Drop and Strategic ManeuverA whale recently caused a stir in the crypto market by dumping 26,600 ETH ($82.5 million) at $3,102 to repay debt on Aave, resulting in a 3.4% drop in Ethereum’s price. Following this, the whale created a new wallet and borrowed 80.9 million USDT from Aave to purchase 26,235 ETH at the lower price of $3,084. This strategic move aims to capitalize on the price dip.

The whale’s current health rate is 1.9, with a liquidation price of $1,625, indicating a calculated risk in leveraging this substantial position.

Addresses involved:

Moreover, many Ethereum whales are on the brink of facing liquidations of ETH deposited in the Aave and Compound. In the past two hours, three whales deposited a total of 28,558 ETH ($82.2 million) to Binance and sold to repay debt.

Whale Addresses:

This rush to repay debt and avoid liquidation underscores the mounting pressure on major ETH holders and the broader implications for the crypto market’s stability.

Will $ETH Hit $2,616?As the Ethereum price action forms a triple black crow pattern in the daily chart, the chances of a downfall are significantly higher. With increasing sell pressure, the stress on the $2,875 grows, signaling a potential breakdown.

Currently, the ETH price trades at $2,866, resulting in a bearish signal for an extended crash. However, a daily closing will improve the signal strength for positional traders.

A break rally could put down Ethereum by an additional 10% drop to hit the $2,616 level.

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