The **Ethereum ($ETH )** price took a hit on Monday, dropping to **$2,400** after a major whale sold at a significant loss. This decline erased **$35 billion** from Ethereum’s$ETH market cap, which fell from **$325 billion** to **$289 billion** in just a few days.

### **Why Did Ethereum $ETH Drop?**

The sell-off was triggered by a combination of **broader market weakness** and a **large holder exiting their position at a loss**. According to **Lookonchain**, a whale withdrew **7,000 ETH ($16.8 million)** at a steep loss.

- The same address had previously withdrawn **13,479 ETH ($48.82 million)** between **December 2024 and January 2025**.

- The whale still holds **6,479 ETH** but has realized a **$16.28 million loss** so far.

This **capitulation** added selling pressure, but Ethereum’s fundamentals suggest a potential rebound could be on the horizon.

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## **Bullish Signs for Ethereum**

Despite the price drop, several key indicators suggest **Ethereum could recover soon**:

### **1. Exchange Outflows Increase**

- **Nansen data** shows investors are moving ETH **off exchanges** into self-custody wallets.

- ETH held on exchanges dropped **3.46%** to **23.47 million**.

- Only **19.45%** of Ethereum’s total supply remains on exchanges—a **bullish signal** for reduced selling pressure.

### **2. Institutional Demand Grows**

- **BlackRock’s BUIDL fund** (a tokenized treasury product on Ethereum) has surged to **$2.9 billion** in assets, up from **$640 million** at the start of the year.

- This shows **strong institutional interest** in Ethereum-based financial products.

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## **Ethereum Price Analysis: What’s Next?**

Looking at the **daily chart**, Ethereum’s price action reveals key levels to watch:

- **Support:** **$2,000** (critical level—if broken, the bullish outlook weakens).

- **Resistance:** **$2,732** (recent high) and **$3,527** (78.6% Fibonacci retracement level).

- **Moving Averages:** ETH remains above the **50-day & 100-day EMAs**, hinting at a potential **golden cross** formation.

### **Elliott Wave Theory Suggests a Potential Rally**

- The recent pullback could be **Wave 2** in an Elliott Wave pattern.

- If ETH holds above **$2,000**, the next target could be **$3,500+** in the coming months.

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## **Final Verdict: Buy the Dip or Wait?**

While the whale sell-off caused short-term pain, Ethereum’s **strong fundamentals** and **institutional adoption** suggest this dip could be a **buying opportunity**.

### **Key Takeaways:**

✅ **Exchange outflows** = Less selling pressure ahead.

✅ **BlackRock’s BUIDL fund** growing = Institutional demand rising.

✅ **Technical setup** favors a rebound if **$2,000 holds**.

**What’s your move?** Are you accumulating ETH at these levels or waiting for a deeper correction? Let me know in the comments!

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