News View Non-AMP

Ethereum (ETH) Bearish Signal: Is $3,500 the Next Target?

Published by
Chandan Gupta

Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is showing signs of a potential price decline after recent bearish price action. In addition to the price action, whales and industry experts seem to be losing interest in the altcoin, as revealed by the on-chain analytics firms IntoTheBlock and CryptoQuant.

Will ETH Price Decline?

Recently, ETH experienced a price surge of over 15% and hit the $4,100 mark for the first time since March 2024, where it faced selling pressure and a notable price decline. Historically, ETH has reached this level five times, and each time, it has encountered a price decline and significant selling pressure.

Ethereum (ETH) Rising Exchange Reserve

This time, looking at past trends whales and long-term holders appear to continue depositing their ETH to exchanges, as revealed by CryptoQuant’s ETH exchange reserve metrics.

Data shows that exchange reserves have increased by nearly 100k ETH worth $400 million which could signal increased selling pressure as the price nears a six-month high.

Rising Unstaking Activity

In addition to the rising exchange reserves, whales have begun withdrawing tokens from staking, suggesting they are gradually taking profits due to the recent price surge or indicating a loss of interest in holding ETH long-term.

This is evidenced by the recent activity of Justin Sun, the founder of Tron. On December 16, 2024, the whale transaction tracker Spotonchain shared a post on X (formerly Twitter) stating that Sun’s linked wallet address requested to withdraw 52,905 ETH, worth $209 million, from the staking protocol Lido Finance.

Source: Previously Twitter

Ethereum (ETH) Technical Analysis and Key Levels

According to expert technical analysis, ETH appears to be forming a bearish double-top price action pattern at the strong resistance level of $4,100. In addition to the double-top pattern, ETH’s Relative Strength Index (RSI) is falling, indicating a bearish divergence, which further suggests a price decline and increased selling pressure.

Based on the recent price action, there is a strong possibility that ETH could decline by 12% to reach the $3,500 level in the future.

Current Price Decline

At press time, ETH is trading near the $3,970 level and has experienced a modest price decline of 0.80% in the past 24 hours. During the same period, its trading volume has soared by 60%, indicating heightened participation from crypto enthusiasts amid the recent price surge.

Chandan Gupta

Chandan Gupta is a crypto analyst and news writer at CoinPedia. He specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Chandan simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space

Recent Posts

Ripple CEO Sparks XRP Hype with Major XRPL Apex 2025 Announcement!

Ripple CEO Brad Garlinghouse has hinted at an exciting event set to take place in…

April 4, 2025

XRP vs. Bitcoin: Retail Investors Drive XRP’s Growth While BTC Stalls

A new report from Glassnode reveals an interesting shift in crypto investment trends. While Bitcoin…

April 4, 2025

Fartcoin Roars Back With 24% Surge: Eyes Locked On $1 As Momentum Builds.

Fartcoin (FART), the AI-backed memecoin cryptocurrency, blasted onto the scene with 24.5% price pop in…

April 4, 2025

Is First Digital Trust in Crisis? Justin Sun Exposes $100M Deficit

Tron founder Justin Sun has publicly accused First Digital Trust (FDT), a Hong Kong-based financial…

April 4, 2025

XRP Price Today: Can It Break Out or Will the Bearish Trend Continue?

The crypto market has been all over the place recently, and XRP is no exception.…

April 4, 2025

Top Altcoins to Watch in April 2025

Crypto markets had a wild week - prices jumped, dipped, and then bounced back, all…

April 4, 2025