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Ether (ETH) took a brutal dive, shedding over 10% between Thursday and Friday. The crypto market bloodbath intensified as Bitcoin cracked the psychological $70,000 barrier, dragging Ethereum down with it in a whirlwind of selling pressure.
Ethereum’s roller coaster week ended with a stomach-churning drop. After peaking at $3,565 on Thursday, the second-largest cryptocurrency plunged to $3,060 by Friday morning, wiping out all gains from its recent rally. The bleeding has slowed, with Ethereum hovering just below $3,200, but investors are still reeling from the nearly 8% loss in the last 24 hours.
A perfect storm brewed as crypto prices mirrored the broad U.S. market bloodbath, with stocks and bonds joining the downward spiral. Fresh off the heels of the U.S. government shutdown, liquidity remained tight, adding fuel to the fire. The looming possibility of the Federal Reserve holding steady on interest rates in December only intensified the pressure cooker atmosphere.
Ether ETFs are hemorrhaging cash. Since Jerome Powell’s late October Fed meeting dashed hopes of December rate cuts, a staggering $1.4 billion has drained from U.S.-listed spot ether ETFs, according to Farside Investors. Thursday’s mass exodus of nearly $260 million marked the worst single-day outflow in a month, signaling a potential crisis of confidence in the digital asset.
But it’s not just the tourists packing their bags. Even the seasoned veterans, the long-term Ethereum holders who’ve weathered countless storms over the last 3-10 years, are making for the exits. Glassnode’s on-chain analysis reveals a significant acceleration in their selling – a staggering 45,000 ETH (roughly $140 million) per day, based on a 90-day moving average. That’s the fastest exodus we’ve seen since the market turbulence of February 2021.
Ether long-term holder selling accelerated. (Glassnode)
Beneath the blockchain’s gleaming surface, cracks are forming. Active users are dwindling, with monthly addresses slipping below 8.2 million, a stark contrast to September’s 9 million-plus. But the real gut punch? Transaction fees have cratered. A brutal 42% plunge leaves a meager $27 million in the coffers, according to Token Terminal, signaling a deeper malaise than mere market jitters.
Key technical levels to watch
ETH’s bull run hit a brick wall. CoinDesk Research flags a breach of the $3,325 support, painting a stark bearish picture with a chilling staircase of lower highs. Brace yourselves.
Bulls, beware! The first line of defense for Ethereum lies at $3,080. Should that fail, look for a secondary safety net at $3,050, with the ultimate floor residing way down at $2,880.
For the bears to maintain control, they must conquer multiple resistance walls. The first hurdle is $3,330, a price point that once offered support. Above that, the $3,500 mark acts as the main battleground. A successful assault past that could see a rally towards $3,650, the high point of the descending channel.
A colossal 641,103 units dumped during the $3,325 plunge a frenzied 71% spike beyond the usual daily churn. Now? The trading floor’s eerily quiet. Volume’s slumped to a mere 80% of its weekly heartbeat. Has the selling storm truly passed, or is this just the eye of the hurricane?
ETH’s ascent stalled: the bullish dreams of April shattered as it crashed through its ascending channel. A bearish flag now waves, painting a landscape of lower highs. Keep a close watch on the $3,077-$3,146 zone is it a mere pit stop or the foundation for a new launchpad?
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