- Following a sharp decline on Monday, Ethereum (ETH) briefly stabilized on Tuesday but faced another threat.
- This turmoil unfolded in an environment of increased tensions in the Middle East, with the conflict between Israel and Hamas and regional instability shaking investors and affecting risk assets.
- Leading crypto analyst Ali Martinez issued a warning that Ethereum is teetering above a critical demand zone.
Ethereum’s price is showing signs of recovery after being under pressure on Monday, but a famous analyst has cautioned that further declines could be ahead!
A Concern Arises for Ethereum Price
Following a sharp decline on Monday, Ethereum (ETH) briefly stabilized on Tuesday but faced another threat. This volatility occurred as a wallet associated with the Ethereum Foundation chose to sell a portion of its allocated tokens, resulting in general panic.
As a result, Ethereum’s price experienced a drop of over 2% in just a few hours. This sudden drop caught many by surprise and prompted traders to react. Monday was particularly challenging for crypto traders as the market witnessed dramatic selling. As a result, approximately $100 million worth of liquidations took place, particularly impacting long positions, which had bet on price increases.
Notably, this turmoil unfolded in an environment of increased tensions in the Middle East, with the conflict between Israel and Hamas and regional instability shaking investors and affecting risk assets.
Ethereum’s Imminent Threat
Despite apparent stability on Tuesday, concerns persist for Ethereum. Leading crypto analyst Ali Martinez issued a warning on Twitter, stating that Ethereum is teetering above a critical demand zone.
“Ether is hovering above a critical demand zone. Keep a close eye, as a daily close below $1,530 could signal a sharp correction for ETH.”
Martinez emphasized the importance of closely monitoring the situation, noting that 1.59 million addresses purchased $1.92 million worth of ETH in this area and that $2.9 billion worth of ETH has been bought along this range.
Martinez also highlighted that Ethereum whales have been capitalizing on the rising prices since February 2023, selling or redistributing approximately $8.5 billion worth of ETH. According to the expert, the continuation of this selling trend and no sign of a shift toward Ethereum accumulation are particularly noteworthy.
However, it’s important to note that Ethereum has recently found itself under a negative shadow. Factors such as Vitalik Buterin’s token sales and growing concerns in the crypto community about Ethereum’s visible centralization within staking pools have exerted significant downward pressure on its price.
