Ethereum (ETH) experienced a drop this morning, with the price retreating from a high point of around $2600 to around $2530, a decrease of about 1.9% within 24 hours. This drop is the result of multiple market factors resonating, and here is a detailed analysis.
1. Three major resistance strategies on the technical front.
1. In the past 24 hours, two long-dormant Ethereum whale addresses deposited 10,195 ETH (worth $25.67 million) and 1,764 ETH (worth $4.4 million) into exchanges, respectively. These addresses had been inactive for 3 years and 8 years, and their selling behavior has raised market concerns about 'ancient holders cashing out', increasing short-term selling pressure.
2. In the early hours of today, the total liquidation amount across the network reached $10.09 million within one hour, with long positions accounting for 88.6% ($8.94 million) and ETH liquidations totaling $1.51 million. This indicates that the market leverage is too high, and price fluctuations easily trigger forced liquidations, forming a negative feedback loop of 'decline → liquidation → accelerated decline'.
3. ETH has recently attempted to break the $2800 resistance level multiple times without success (e.g., after hitting a high of $2800 on May 24, it retreated). This position has been marked by Glassnode as a 'supply dense area for long-term holders', where many investors sell to lock in profits or reduce losses, leading to price pressure.
2. Major events in the news.
1. Three days ago, Smart Money made a profit of $1.1 million by going long on Ethereum, and four hours ago, they went long on ETH again, opening a long position of 15,000 ETH (worth $38.57 million) using 25x leverage, with a liquidation price of $2441.9.
2. A whale/institution became active after 4 years, transferring 97,001 ETH ($248.64 million) into three different wallets and transferring 137 ETH ($351,000) into one. This whale withdrew 101,390 ETH from Binance and Bitstamp 4-5 years ago when it was worth $6.718 million, and currently, the profit stands at $192.38 million.
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$ETH