Ethereum Plunges Below $1,600 Amid Market Turmoil: Whale Liquidations and Technicals Point to Further Tests
Ethereum has suffered a dramatic sell-off, with prices plunging below $1,600 as liquidations cascade through the market. The second-largest cryptocurrency ETH/USD is currently holding above $1,500, down over 14% in the past 24 hours, leaving investors scrambling for safety amid broader market turmoil.
Whale Liquidations Accelerate ETH’s Downward Spiral
One major whale liquidation event seems to be the instant trigger for Ethereum’s price fall. Data from Lookonchain shows that one whale lost about $106 million after their 67,570 ETH investment was sold on Maker following Sunday’s dramatic price drop. Liquidation helped ETH drop from above $1,800 to about $1,500.
Quickly spreading market fear, another investor apparently sold 14,014 ETH valued about $22 million. Ethereum has been pushed to pricing levels not seen since October 2023 by the chain reaction of selling, therefore erasing trust in what has been a challenging year for the commodity.
Ethereum’s Market Dominance Falls to Five-Year Low
Apart from immediate price concerns, Ethereum’s market position seems to be more unstable. As Bitcoin’s dominance soars to above 60%, its market share has dropped to a five-year low, below 9.4%. This shows a major change in investor mood and underscores growing difficulties for Ethereum’s place in the bitcoin ecosystem.
With its lowest level since March 2020—0.021—the ETH/BTC trading pair indicates that Ethereum is losing ground not only against the dollar but also against Bitcoin. This points to either capital leaving the crypto market totally or moving from Ethereum to Bitcoin.
ETH Supply Squeeze Potential Offers Glimmer of Hope
Though the picture is dark, on-chain data presents a possible bright side. Ethereum supply on exchanges has been continuously falling since 2022, according to CryptoQuant, suggesting that investors might be shifting holdings into cold storage instead of making them accessible for quick sale. Once market mood recovers, this decrease in accessible supply could perhaps create conditions for a supply constraint and price recovery.
Certain whales seem to be seeing the drop as a gathering point. Recently purchasing 24,817 ETH for around $42 million, an entity known as “7 Siblings” now owns over 1.2 million ETH valued at almost $1.9 billion.
ETH/USD Technical Indicators Flash Warning Signs
For Ethereum’s short-term future, technical study paints a worrying image. Now trading under both its weekly 200-day moving average around $2,500 and the exponential moving average near $2,250, the bitcoin has clearly broken through multiple important support levels.
Currently reading at 27, the Relative Strength Index (RSI) is below the 30 oversold mark. Although this usually indicates that an asset might be underpriced and ready for a comeback, experts caution that as the decline lasts the RSI might stay below oversold level. More worrisome for bulls, the MACD indicator displays a bearish crossover signaling more downside potential and providing sell recommendations.
Should selling pressure persist, Ethereum’s next significant support level is at $1,420, with further support at $1,350 should it fail to retain its present support level at $1,500. On the other hand, any recovery would encounter strong opposition at $1,600, $1,675, and a more major obstacle around $1,710.
Ethereum struggles to rebuild investor confidence as President Trump’s aggressive trade measures keep rattling world markets. For now, as the market gets ready for possible more turbulence, all eyes stay on the crucial $1,500 support level.
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