- Ethereum tests $1,762 as whales sell 760K ETH
- DeFi dominance drops as Solana gains market share
- ETH recovery possible if resistance breaks $1,950
Ethereum has dropped below $1,800, raising concerns about further losses. The cryptocurrency is experiencing selling pressure, with technical indicators suggesting a possible bottom formation. Traders are closely watching Ethereum’s price action, as a reversal could take place if key resistance levels are broken.
Ethereum Faces Selling Pressure as Whales Liquidate Holdings
The Ethereum price dropped by 12% over the past week while showing multiple negative daily charts. The price is now testing the $1,762 support level, which previously acted as a reversal point in early March. A Doji candle has appeared at this level, signaling possible trend exhaustion.
Analysts believe that a double bottom formation could support a potential recovery. However, for this to be confirmed, Ethereum must break above the local resistance trendline within the broader descending channel.
Recent analysis shows that large Ethereum investors sold 760,000 ETH tokens during the past two weeks. This sell-off has contributed to Ethereum’s weakening price. Additionally, the number of large ETH transactions has decreased by 63.8% since February 25.
The reduction of whales in the marketplace indicates financial giants are either taking out Whale-related investments or they choose not to participate thus diminishing market liquidity and price stability.
Ethereum’s Market Position Weakens as DeFi Share Declines
The relationship between Ethereum and Bitcoin performance shows signs of significant decline. In December 2020 the ETH/BTC ratio reached its minimum level at 0.022.A 73% decline was registered when the ratio hit its maximum of 0.085 during September 2022.
Ethereum is down 46% year-to-date, while Bitcoin has seen a comparatively smaller 10% drop. Capital has started moving away from Ethereum to Bitcoin according to current market data.
Ethereum’s dominance in the total value locked (TVL) of decentralized finance (DeFi) protocols has also declined. Ethereum’s TVL now stands at $50.68 billion, accounting for 52.76% of the total DeFi market. This is a decrease from its 61.64% share in February 2024. Meanwhile, Solana has gained traction, with its TVL rising from 2.84% to 7.24%, surpassing $6.69 billion.
According to analysts Ethereum shows potential to reach a stable price position in the near future. Prices above $1,762 support a possible recovery toward $1,950 as well as $2,080. The exchange value below $1,700 is predicted to trigger more selling activities which might propel Ethereum toward $1,500 while setting conditions for recovery.
