Cryptocurrency markets experienced a downturn as Ether (ETH) dropped by 1.82%, testing a critical support level at $2,145.
This price decline triggered a substantial transfer of 11,200 ETH, valued at $24.3 million, from Galaxy Digital to Binance, as reported by on-chain tracking platform Lookonchain. In this article, we explore the recent developments in the ETH market and analyze its technical outlook.
Market downturn and Galaxy digital’s transfer
Ether (ETH), the second-largest cryptocurrency by market capitalization, faced a 1.82% drop in its price, aligning with the broader market’s 2.27% decline over a 24-hour period. At the time of writing, ETH was trading at $2,172.69, according to CoinMarketCap, pushing its weekly performance to a loss of -2.97%.
In a notable development, Galaxy Digital executed a significant deposit of 11,200 ETH, valued at $24.3 million, to the popular cryptocurrency exchange, Binance. The reasons behind this sizable transfer remain undisclosed, but it coincided with ETH’s price drop, raising questions about the intentions behind the move.
Technical analysis and support levels
From a technical standpoint, ETH faced resistance at the $2,300 level in recent days. This resistance led to a downward movement, placing ETH within the lower boundaries of a medium-term positive price channel that had formed over the previous weeks. Additionally, ETH found support at the $2,145 level.
The critical question now is whether ETH will break below this support level, potentially exposing it to further downside pressure and a subsequent support level at $1,985.53 within the next 48 hours. However, if ETH can close today’s trading session above the $2,145 mark, a more bullish scenario may emerge, with the cryptocurrency potentially challenging the $2,300 resistance level in the coming week.
Continued buying pressure could further strengthen ETH’s position, potentially propelling it above the $2,300 resistance level and paving the way for a short-term target of $2,615.
Increased trading volume
Despite the price drop, Ether (ETH) experienced a notable increase in trading volume, which surged by more than 22% to surpass $8 billion. Such a significant uptick in volume amid a price decline suggests that selling pressure may have been the driving force behind this surge in trading activity.
The cryptocurrency market, led by Ether (ETH), has faced a recent price decline, with ETH testing a crucial support level at $2,145. This decline triggered a substantial transfer of 11,200 ETH, worth $24.3 million, to Binance by Galaxy Digital. While the reasons behind this transfer remain unknown, it coincided with ETH’s price drop, raising speculation about the motives behind the transaction.
From a technical perspective, ETH’s ability to maintain its position above the $2,145 support level will be closely monitored. A break below this level could expose ETH to further downside risk, with a potential target at the $1,985.53 support level. Conversely, if ETH manages to close above $2,145, a more bullish scenario could emerge, with a challenge of the $2,300 resistance level on the horizon.
Despite the price decline, ETH witnessed a notable increase in trading volume, suggesting that selling pressure may have been the driving factor behind the recent market activity. The cryptocurrency market remains highly dynamic and influenced by a range of factors, making it crucial for investors and traders to stay vigilant and adapt to changing conditions.
