Ethereum (ETH) Price Struggles as ICO Whale Sells 6,000 ETH, Market Analyst Benjamin Cowen Raises the Alarm

Ethereum's price has been struggling over the past week, dropping more than 12% as of today. However, the asset saw a brief rally

Ethereum price movements have been closely followed over the past week, showing a steep decline of more than 12% as of today. However, the asset saw a brief rally, finding support at an intra-day low of $2,312.58 and climbing back up to $2,438, marking a 5% increase from the day’s low. This rebound comes amidst news that a prominent Ethereum ICO participant, often referred to as a “whale,” has sold another significant portion of their holdings.

In the broader market, ETH’s circulating supply has been slowly increasing, particularly due to the recent changes in monetary policy. According to crypto analyst Benjamin Cowen, in a recent series of tweets, he highlighted how Ethereum’s supply has been increasing at a rate of 60,000 ETH per month since April 2024. If this trend continues, the total supply will be back at pre-merge levels by the end of the year.

Cowen also noted that while the Federal Reserve’s recent rate cuts have had some impact on demand, a more aggressive cut of at least 100 basis points may be crucial for a strong shift in Ethereum’s price trend, aligning with the massive Ethereum ICO move.

Furthermore, Cowen also pointed out that there have been similar shifts in the past, especially in 2016 and 2019, where Ethereum’s price plunged in Q4. Going by his analysis, the ETH/BTC price could be set for another sharp decline, replicating previous trends.

In other news, a prominent member of the Ethereum community and Dogecoin creator, Billy Markus, recently engaged in a light-hearted banter on Twitter, discussing the possibility of a “Shiba Destroyer” to counter the massive Shiba Inu holdings of prominent cryptocurrency exchange Binance.

This banter follows the recent attention toward Binance’s holdings of various cryptocurrencies, including a substantial amount of Shiba Inu (SHIB) among the top assets. While the exchange’s holdings have been a topic of discussion among the crypto community, this playful interaction adds a touch of levity to the matter.

Moreover, as Ethereum price movements continue to be impacted by various factors, co-founder Vitalik Buterin has also proposed measures to strengthen the ecosystem amid these challenges. Recently, Buterin suggested reducing the minimum ETH staking requirement from 32 ETH to 16 ETH to encourage more participation in Ethereum’s proof-of-stake network.

Meanwhile, a recent analysis by Santiment highlighted how traders and investors appear to be losing confidence in ETH, especially with the recent price decline from $3,000 levels. According to the data, there has been a 34.97% decrease in Ethereum’s derivative trading volume over the past week.

This reduction in trading volume suggests waning interest and possibly lower liquidity in the market, which could signal a bearish outlook or a consolidation phase. Additionally, open interest in Ethereum derivatives increased slightly by 2.80%, totaling $11.58 billion.

This combination of lower volume but higher open interest may imply that some investors are holding their positions in anticipation of further price shifts, either up or down, over the coming months.

Finally, ETH price technical analysis on the 12-hour chart shows that the recent decline has pushed its price into a crucial support range between $2,440 and $2,252. If ETH price manages to close above the midpoint of this range at $2,340, it could signal a stabilization point, with the possibility of a reversal.

According to market analysts, overcoming the $2,564 resistance level could set the stage for a potential rally toward the psychological $3,000 mark and even $3,500, depending on broader market conditions. For this rally to materialize, however, Bitcoin’s performance will play a significant role. A stable BTC price around the $61,000 to $62,000 range could lend support to Ethereum and other altcoins, boosting investor confidence.

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