ETH Faces $2.3K Support Test, 2.77M Addresses Buy 52.65M ETH

• Ethereum faces critical $2,300 support level, risking a 30% drop to $1,600 if breached.
• 2.77 million addresses buy 52.65 million $ETH at the crucial $2,300 support level.
• ETH whale deposits 45,000 ETH to Kraken, adding selling pressure and weakening sentiment.

Ethereum (ETH) is facing the decisive level at $2,300 after testing the significant support area. Crypto analyst Ali suggested that if the bulls manage to defend this level, they can propel the price to $6,000. But if this support is removed, a 30% price drop to $1,600 might occur.

The most significant support level for #Ethereum is at $2,300, where 2.77 million addresses bought 52.65 million $ETH! pic.twitter.com/dgwHOvo20L

— Ali (@ali_charts) October 8, 2024

Crypto analyst points to this level of $2,300 as crucial, where 52.65 million of ETH were bought by approximately 2.77 million addresses. This is viewed as Ethereum’s most grounded fundamental. If it holds at this level, investors may be able to see a massive price bounce back. However, the whale sell-off that continues to persist causes fears over Ethereum’s price stability. At the time of writing, Ethereum was priced at $2,426 with a market capitalization of $292 billion, down by 1.2%.

Whale Selling and Market Sentiment

A primary cause of Ethereum’s price decline is the selling pressure that comes from these big Ether holders commonly referred to as ‘whales’. According to the data obtained from Spot On Chain, an Ethereum ICO whale has been moving a significant amount of ETH to Kraken exchange. This particular whale has transferred 45,000 ETH in the last 15 days which is equal to $113.3 million. The average price for these was approximately $2,517. Despite this substantial sell-off, the whale still holds 94,450 ETH, worth about $230 million.

The Ethereum whale, who received 150K $ETH during ICO, deposited another 5K $ETH ($12.2M) to Kraken just 4 hours ago.

In total, this whale has deposited 45K $ETH ($113.3M) to #Kraken over the past 15 days at an average price of $2,517, leaving 94,450 $ETH ($230M) remaining.… https://t.co/2BLcWey4Kx pic.twitter.com/TnlbdrGV3d

— Spot On Chain (@spotonchain) October 8, 2024

The whale activity has heightened bearish sentiment in the market, especially as Ethereum faces weakening overall demand. Investors have shifted attention to other Layer-1 blockchains such as Solana, Sui, and Avalanche, amid Ethereum’s price dip. Furthermore, Ethereum has experienced a 7% price decline in the past week.

The current price action suggests that Ethereum could see further correction if it breaches the $2,300 support. At the same time, Ethereum’s inflationary pressure has increased following the Dencun upgrade. As transaction fees on Ethereum Layer-2 platforms surged, fewer ETH tokens were burned, reversing Ethereum’s deflationary trend. This inflationary turn adds more downward pressure on Ethereum’s price.

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