ETH Experiences Downward Pressure as Whale Activity Declines – Is a Drop Below $3,000 Ahead?

A few on-chain indicators suggest that Ether, the native asset of the Ethereum ecosystem, may be set to decline to levels seen before November.

The crypto analytics firm IntoTheBlock noted in a recent report that there has been a significant decrease of 73.2% in the netflow of whales over the past week.

This metric monitors the activity and capital movements of wallet addresses that hold 0.1% of ETH’s total circulating supply (over $400 million based on the current market capitalization).

When large holders begin to sell an asset they have held for a considerable time, it often precedes a substantial drop in its price. In the case of ETH, the recent decline that commenced on December 16 could be intensified, potentially pushing its price below the psychological support level of $3,000 per token.

Additionally, data from CryptoQuant revealed that the Taker-Buy-Sell ratio for ETH over the past week currently stands at 0.94.

This metric indicates which side is under the most pressure. A ratio above 1 suggests that buyers are dominating the price movement, while a ratio below 1 indicates that sales volumes are higher.

Last year, Ether ($ETH) provided investors with gains of 45.9%. Despite this positive performance, the network has been struggling to compete with emerging smart contract platforms that have proven to be more efficient, such as Solana ($SOL) and more recently Sui ($SUI).

In the case of Solana, its market capitalization remains less than a quarter of Ethereum’s. However, the rise of meme coins and the network’s ability to handle the significant transaction volume these tokens have brought in is a testament to its robust architecture.

Ether ($ETH) Declines Following Double-Top Pattern Formation

The price of Ether ($ETH) has experienced a notable decline since December 16 after the confirmation of a double-top pattern. This bearish formation typically indicates that buyers have been hesitant to purchase the asset above a certain price—specifically, $4,100 per coin.

When a double-top occurs, the asset now faces a strong resistance level, and significant buying pressure is required for the price to surpass this threshold. Consequently, Ether (ETH) may trade below $4,100 for a period unless a significant development manages to rekindle buyers’ interest in this cryptocurrency in the near future.

The recent downturn is revealing two critical support levels for $ETH at $3,100 and $3,000. A breach below these levels could lead to considerable weakness for this crypto asset and may drive it back to pre-November levels.

At a time when the network is struggling to remain competitive, a drop below $3,000 could indicate that whales are abandoning the asset in favor of new projects like Solana, Sui, or Avalanche.

The Relative Strength Index (RSI) shows a bearish divergence that accompanied the double-top formation. Unless buyers manage to push the price above $4,100 in the coming weeks, this technical setup has likely signaled the onset of a bearish cycle for $ETH in the short term.

This Meme Coin is Leading a New Movement Known as Vote-to-Earn (V2E)

The presale event for a new meme coin called Flockerz is drawing significant attention as this project introduces an intriguing mechanism known as vote-to-earn (V2E), which could be adopted by many other tokens in this emerging segment of the crypto market.

With V2E, token holders receive rewards for engaging and participating in all major decisions concerning the project.

This fosters a greater sense of community, resulting in stronger connections among members.

The Flockerz presale has already raised $8.49 million from investors in less than two weeks, underscoring the appeal of its value proposition.

Each $FLOCK holder will have a voice in the project’s future and will be rewarded for casting their votes.

The first day of 2025 feels incredible now that you’ve entered Flocktopia. pic.twitter.com/bRgLNe7EQp

— Flockerz (@FlockerzToken) January 1, 2025

Moreover, they will earn attractive staking rewards that currently stand at 323%. Investors who have purchased $FLOCK have already staked 557,724 million tokens.

These rewards will be gradually distributed over the next two years, and the total supply of the token will increase at a rate of 684.93 $FLOCK for each new ETH block.

Early investors can acquire as many $FLOCK tokens as they wish for $0.00658 each—an advantageous discounted price that positions them for optimal returns once the token is widely promoted and listed on exchanges.

To invest in $FLOCK, simply visit the Flockerz website and connect your wallet. You can either convert USDT and ETH tokens for $FLOCK or use a bank card to complete the purchase.

The post ETH Faces Bearish Pressure as Whale Activity Plummets – Collapse Below $3,000 Incoming? appeared first on Cryptonews.