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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Dec 20, 2024 12:32 UTC
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Why Ethereum Price is Down Today? Market Fear Grips ETH
Ethereum has plummeted by nearly 20% after reaching a high earlier this week, driven by a combination of factors.
El Salvador's agreement with the IMF to reduce Bitcoin policies, the Ethereum Foundation's continued ETH sales, and a large whale movement have caused the decline.
Ethereum's price may find support near $3,000, but further declines are possible if selling pressure continues.
Ethereum (ETH) is experiencing a significant price drop, leaving investors anxious about its short-term prospects. After peaking at $4,109 earlier this week, the cryptocurrency has fallen nearly 20%. The decline is being driven by a mix of whale activity, institutional selling, and global developments, raising concerns about further losses.
El Salvador’s IMF Agreement Stirs the Market
A major factor weighing on market sentiment is El Salvador’s recent agreement with the International Monetary Fund (IMF). The country’s $1.4 billion loan deal includes conditions to scale back its Bitcoin-friendly policies, sending ripples through the crypto market. Additionally, El Salvador’s move to mandate tax payments exclusively in U.S. dollars has further dampened enthusiasm among crypto supporters.
Ethereum Foundation’s Selling Adds to the Pressure
The Ethereum Foundation’s decision to sell large amounts of ETH is another contributor to the price drop. Recently, the Foundation sold 100 ETH, which resulted in a 17% decline in Ethereum’s value. Over the past year, the Foundation has sold 4,466 ETH, worth roughly $12.6 million.
This consistent selling has heightened bearish sentiment in the market.
The market is also facing significant selling pressure from large players. Recently, a whale deposited nearly 50,000 ETH, worth about $170 million, into Binance, triggering fears of more selling.
The whale also withdrew over $137 million worth of stablecoins, indicating a shift in strategy that might have influenced Ethereum’s price.
- Also Read :
- Crypto Markets Plunging Down as Bitcoin (BTC) Price Drops Below $94,000; Has the $90,000 Targets Activated?
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Ethereum Price Analysis
Looking ahead, Ethereum’s price may test the $3,000-$3,025 range, where support from the 200-day exponential moving average (EMA) could help stabilize it. However, if selling pressure persists, further declines are possible.
Currently, Ethereum is trading around $3,125, reflecting a 15.6% drop in the last 24 hours. Despite this, the $3,250 support level may prevent further declines.
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FAQs
At press time, the Ethereum price trades at $$3,220.46.
As per our Ethereum price prediction 2025, the ETH price could reach a maximum of $6,925.
As the altcoin season begins, the short-term gains make Ethereum a lucrative buying option. However, the long-term promises of this programmable blockchain make it a viable long-term crypto investment.
Yes 
No 
