Ethereum (ETH) has recently experienced a sharp correction, falling to around $2,400 amid widespread risk-off sentiment in both crypto and traditional markets. Notably, a large whale reportedly sold over 7,000 ETH at a loss—totaling approximately $16.8 million—further contributing to short-term selling pressure.
🔍 Key Market Developments
ETH price dropped from $2,732 to $2,400, wiping out $35 billion in market capitalization in just a few days.
Whale activity: A major address that withdrew 13,479 ETH between Dec 2024 and Jan 2025 now holds 6,479 ETH, having realized over $16 million in losses.
Exchange balances drop: According to Nansen, ETH on exchanges declined by 3.46% to 23.47 million. Exchange-held supply now stands at just 19.45%—a signal that many investors are shifting toward long-term holding.
⚙️ Positive Signs for ETH
Strong fundamentals: Despite recent volatility, Ethereum-based assets are thriving—highlighted by BlackRock’s BUIDL fund, which grew from $640M to $2.9B in just five months.
Technical outlook: ETH remains above its 50-day and 100-day EMAs and is forming a potential mini golden cross. The price is testing the 50% Fibonacci retracement zone, which, if held, could signal a fresh upward wave based on Elliott Wave theory.
Upside scenario: If ETH rebounds, a long-term target could be $3,527 (Fibonacci 78.2%). However, a drop below $2,000 would challenge the current bullish structure.
🧭 Summary
Ethereum is undergoing a healthy correction after its recent rally, but on-chain metrics and institutional flows continue to support its long-term outlook. Investors should closely monitor key support levels and trend reversal signals to identify new entry opportunities.
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Note: This article is for informational purposes only and does not constitute investment advice. Always do your own research before making financial decisions.
