Quick overview
- Ethereum’s price dropped over 9% to below $2,500, reducing its recent gains to $2,860.
- The decline follows Israel’s alleged preemptive strike against Iran, with expectations of retaliatory attacks.
- The cryptocurrency market saw over $1 billion in liquidations, primarily affecting long positions.
- The number of Ethereum whales has decreased, indicating potential caution among major holders and waning institutional confidence.
Live ETH/USD Chart
ETH/USD
Ethereum experienced a significant drop, plunging more than 9% below $2,500 in the last day. The gains made by the second-largest cryptocurrency following the rally were reduced to $2,860. According to Defense Minister Israel Katz, the meltdown follows Israel’s alleged “preemptive strike” against Iran.
Katz stated that retaliatory attacks against Israel are anticipated. Over the past day, the cryptocurrency market has witnessed a liquidation of over $1 billion, with a staggering $947 million in longs being wiped out. Whale activity has decreased for the seventh consecutive day, which could indicate that institutional confidence is waning.
The next move could determine the short-term market direction since the altcoin breached the critical support level
Santiment data highlighted that the number of Ethereum whales, or wallets containing 1,000–10,000 ETH, has consistently declined to 5,378 from 5,427 just 10 days ago and 5,400 three days ago. Major holders may be cautious, as evidenced by the seven days of decline despite Ethereum futures open interest recently reaching an all-time high,
Consistent decreases in the number of these whales usually imply either profit-taking, risk aversion, or a drop in confidence in short-term price action. These whales are often used to gauge the sentiment of institutional or high-net-worth investors.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.
