The cryptocurrency world is currently filled with uncertainty due to significant movements by a crypto whale. This whale has transferred 12,374 ETH to Compound and borrowed $31.4 million in stablecoins. As the price of Ethereum may fall to $2,984, there is an increased concern that the whale’s long positions might be liquidated. Over the past four days, Ethereum has plummeted from $3,500 to $3,124, a drop of over 10%, sparking fears of further devaluation.
What does the decline of Ethereum and Bitcoin mean? Why are Bitcoin and Ethereum falling? The top 3 takeaways for investors
What does the decline of Ethereum and Bitcoin signify?
As the cryptocurrency market faces a downturn, some whales are trying to capitalize on this situation. In a notable transaction, a whale acquired 9,425 ETH worth over $30 million from Binance, with the total transactions related to this whale amounting to approximately $120 million. Visit COINTURK FINANCE for the latest financial and business news.
In addition to Ethereum, the whale’s portfolio includes high-capacity coins such as BNB, MATIC, LINK, and AVAX, as well as popular meme coins like Shiba Inu, Dogecoin, Pepe Coin, and Floki.
Why are Bitcoin and Ethereum falling?
The fall of Ethereum seems to be linked to the downward trend of Bitcoin. Reports indicate that large investors and miners are driving the decline of Bitcoin. Market analyst Charles Edwards notes that long-term Bitcoin holders are actively selling off their assets.
Data shared by Edwards from Glassnode shows that 374,000 bitcoins, equivalent to about $24 billion, are moving towards exchanges.
Key takeaways for investors
Investors should consider the following:
Pay attention to the $2,984 level, which is a critical point for potential liquidation of Ethereum. Keep a close watch on whale activities, as they can significantly impact market trends. Monitor the movement of Bitcoin, as it often affects the price of Ethereum.
The potential liquidation of Ethereum whales could exacerbate market concerns. A drop to $2,984 could lead to a larger decline and more extensive liquidations.
Despite recent drops, Ethereum has maintained a level of $3,200 after falling 5% today. ETH’s market capitalization has fallen to $376 billion, with a trading volume of $20.7 billion.
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