Ethereum has been on a bearish trajectory for the past few days following the PEPE coin hype. Ethereum (ETH), the second largest cryptocurrency by market capitalization, is now sending an extreme sell signal. While the sell signal is alarming for Ethereum holders, the inherent volatility of the crypto market means that predicting the exact next level for ETH price remains a challenging endeavor. As the Bitcoin price has not traded with the market’s expectation in recent days, the ETH price is facing a bigger battle to even maintain its support level.
Ethereum enters the red zone
Ethereum whales appear to be showing signs of unease in response to the sale of significant shares by both Vitalik Buterin and the Ethereum Foundation.
Notably, two prominent Ethereum whales unloaded a total of 19,090 ETH, equivalent to approximately $35.7 million, on Uniswap following the Ethereum Foundation’s sale of 15,000 ETH ($29.7 million) to Kraken. These important transactions have stirred up the Ethereum community and sparked investor anxiety.
The latest moves by Vitalik Buterin and the Ethereum Foundation have sparked discussions about the potential ramifications for the future of the cryptocurrency and the impact of such extensive sales on the market. Some experts suggest that these sales may be in response to the recent surge in meme-based assets such as PEPE coins in the crypto market.
In addition, the gas fee on the Ethereum network is rapidly increasing as crypto analytics service WhaleAlert revealed that a trader recently paid a whopping 64 ETH, equivalent to approximately $118,600, in transaction fees for a single transaction.
At the moment, increased gas rates seem to contradict expectations. This situation can be attributed to the recent surge in the popularity of meme coins, which has led to increased network activity and congestion on weekends. The bottleneck, caused in part by large-scale panic selling and skyrocketing prices, could reduce profits from these meme coins, especially for smaller individual investors.
Will the ETH price fall further?
Ethereum faced significant resistance near the $2,000 mark and then started another downtrend. The digital currency sank below the crucial USD 1,920 and USD 1,900 support levels, mirroring Bitcoin’s downside move.
The value of ETH fell as low as $1,835 before bottoming out and losses consolidating. Currently, the digital asset trades below the 100-hour Simple Moving Average. On the hourly chart, a significant bearish trendline is taking shape with resistance near $1,900.
At the time of writing, the price of Ethereum is trading at $1,860, down more than 3.55 in the past 24 hours. The $1,900 level represents the immediate resistance close to the 50% Fib retracement level from the recent drop from the $1,921 high to the $1,835 low.
If the ETH price drops below the $1,820 level, there could be a serious drop in the price chart. A drop below the EMA-100 trendline on the daily price chart will send the ETH price into the fear zone near $1,650.
