Key Points
- Ethereum’s price has dropped below $2.4K, with a 1.8% decrease in the past 24 hours.
- The Chinese government has started selling the $1.3 billion worth of Ether seized from the PlusToken scam.
Ethereum Price Experiences Decline
Ethereum’s price has recently seen a drop, falling below $2.4K.
This drop represents an approximately 1.8% decrease within the past 24 hours. The price decrease occurred during the mid-European session on Thursday.
Technical Analysis of Ethereum
From a technical perspective, Ethereum’s price has been attempting to rebound from the crucial support range between $2,300 and $2,250 for the past two months.
Furthermore, the Ether price against Bitcoin has already formed a double bottom with a bullish divergence in the Relative Strength Index (RSI). This signals the possible onset of the much-anticipated altseason.
Crypto analyst Ali Martinez suggests that Ether’s price could be forming a potential symmetrical triangular pattern in the daily time frame, which is often followed by a major bullish breakout.
Ether’s price against the US dollar could be forming an inverted head and shoulders (H&S) pattern, coupled with a rising divergence in the daily RSI.
If Ether’s price breaks above the resistance level of around $2,700, a major bull run toward its all-time high will be inevitable. However, a consistent close below the support level of around $2,250 will lead to further altcoin capitulation in the near term.
China Begins Selling Seized Ether
On-chain data analysis from the OTC Research firm indicates that the Chinese government has started selling the remaining 542k Ether, valued over $1.3 billion, that was seized from the PlusToken scam.
In the last 24 hours, the Chinese government transferred 15.7k Ether to an unknown address, with experts speculating sales in hindsight.
Moreover, the Chinese government then sent 7k Ether to addresses associated with crypto exchanges in the past 24 hours.
Despite the selling pressure, the Ethereum market is expected to absorb the impact comfortably, although the short-term outlook remains bearish.
The demand from the US spot Ether ETF issuers has significantly declined recently, further contributing to the bearish outlook.
Ethereum’s Network Growth
The Ethereum network has seen steady growth in recent years, driven by upgrades aimed at making its smart contracts more user-friendly.
For example, Ethereum transitioned from the power-consuming Proof-of-Work (PoW) consensus method to the Proof-of-Stake (PoS) and has since attracted more participants through its staking program.
Current market data shows that more than 34.8 million Ether, accounting for about 28.9 percent of the total circulating supply, has been staked by thousands of validators to secure the network.
As a result, the Ethereum ecosystem has grown to a robust web3 ecosystem with more than $44 billion in total value locked (TVL) and over $84 billion in stablecoins market cap.
