Recently, the continued decline in the price of Ethereum (ETH) has attracted widespread attention in the market. According to the latest data from blockchain analysis company LookOnChain, a whale sold 10,070 ETH for $33 million in DAI through three wallets in the past 24 hours, with a transaction price of $3,280 per ETH. This behavior resulted in a loss of $1 million. It is worth noting that this whale withdrew 24,029 ETH from Binance three weeks ago, worth more than $81.3 million, and currently there are about 13,959 ETH remaining in its wallet. According to the current market price, the total value of these ETH is approximately $44.29 million.

Pressure on price action

Ethereum's price trend has performed poorly recently and faces great downward pressure. Due to the failure to break through the $3,730 resistance level for several consecutive weeks, ETH has failed to regain its strong upward momentum and the price has fallen back to around $3,200. In the past 24 hours, ETH has fallen by more than 2.5% again, and the current price is hovering around $3,170. The market sentiment is relatively pessimistic, and the short-selling forces are dominant, further exacerbating the uncertainty in the market.

According to technical analysis, ETH price is currently consolidating in the range of $3,100 to $3,500, and a breakout of either side of this range may determine the medium-term price trend. $3,100 is an important support level, and if this area effectively supports the price, a rebound may occur and re-challenge the upward trend. However, the resistance level of $3,500 still exists, limiting further upside. Analysts pointed out that if Ethereum breaks through the $3,100 support level and continues to move downward, it may further test the key support level of $2,900 and even touch the $2,800 area.

Bears control the market

Judging from changes in financing interest rates, the market's bearish sentiment has become increasingly evident. The recent decline in funding rates, a measure of the cost of holding a long position, reflects investor pessimism about the market outlook. This means that more and more investors may choose to close their positions or sell ETH, causing the price to fall. However, ETH price showed some signs of rebound as it approached the $3,100 support, indicating renewed buying interest on the part of some investors. If financing rates continue to rise, it may indicate an increase in market demand, providing impetus for a price rebound.

Technical indicator analysis

In terms of technical indicators, the MACD indicator has issued a "sell" signal, indicating that there is great downward pressure in the short term. The relative strength index (RSI) is still in the neutral zone and has not yet shown obvious overbought or oversold signals. Therefore, investor sentiment remains uncertain between buying and selling. Although the positive divergence of the RSI may provide a glimmer of hope for a future rebound, the overall technical outlook of the market is still bearish.

In addition, analysts pointed out that ETH has recently fallen below its rising trend channel, indicating a weak medium- and long-term trend. After the price fell below the $3,300 support level, the negative signal became more obvious, and the $3,300 resistance level also became a hurdle for rebounding. If ETH fails to break through this level, it may continue its downward trend and even challenge the $3,000 area.

Changes in market sentiment

It is worth noting that despite the greater pressure in the short term, the market sentiment of ETH is not completely pessimistic. According to some analysts, the support level of ETH near $3,100 may provide an opportunity for the price to rebound. In particular, the recent surge in ETH exchange inflows, especially the increase in large transactions, shows that the activities of whales and institutional investors have increased. This may mean that there is still some buying support in the market, although the current downward trend of prices is still dominant.

Summary and Outlook

Although Ethereum is facing great selling pressure and the price trend shows weakness, there is still a possibility of a reversal in the market. The support level of $3,100 is the most critical technical level at present. If this support level is effectively supported, it may provide a basis for future rebounds. Investors need to pay close attention to changes in market sentiment, financing rates and technical indicators. A breakthrough in any direction may become a decisive factor in the medium-term price trend.

If ETH can successfully break through the $3,500 resistance and sustain above this area, it is expected to restart the uptrend and even challenge higher price levels. On the contrary, if it falls below the $3,100 support and continues to move down to $2,900 or lower, it may mean that Ethereum has entered a deeper correction phase.

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