On January 28th, Monday, the Ethereum price plunged 5% to currently trade at $3,057 level. The surge in selling pressure can be attributed to a broader market downturn as Chinese AI advancement “DeepSeek” created concern for global tech companies and AI models. Will ETH lose $3k floor again?
Key Highlights:
- A significant offloading of ETH from institutions and Ethereum foundation-linked wallet hints at prolonged correction ahead
- A narrow range between 20 and 200 days could signal the initial change in the market post-breakout.
- The Ethereum price could meet the significant surge in demand pressure at $2,700, coinciding with the long-coming support trendline.
Massive ETH Transfers Leave Holders Bracing for Impact
Amid the recent market correction, two ETH transactions have caught investors’ attention and raised concerns about a prolonged downfall. According to a recent tweet from Satoshi Club, Cumberland, a prominent trading firm, deposited 17,750 ETH (equivalent to approximately $54.41 million) to Binance, the largest cryptocurrency exchange.
Additionally, the Ethereum Foundation sold another 100 ETH just 2 hours before reporting. While the scale of the Foundation’s transaction pales in comparison to Cumberland’s, the combined effect of these sales has caused speculation about the motivations behind these moves.
Typically, large-scale movements increase market uncertainty and drive prolonged correction in an asset.
Cumberland moved 17,750 ETH (~$54.41M) to Binance 3 hours ago
The Ethereum Foundation sold another 100 $ETH 2 hours ago
ETH holders right now ❄️ pic.twitter.com/KILyxfMHb1
— Satoshi Club (@esatoshiclub) January 27, 2025
Ethereum Price Eyes $4,600 Rally Despite Correction within Wedge
In the last six weeks, the Ethereum price has showcased a notable correction from $4,100 to $3,200, registering a 22% fall. The series of consistent highs and lows indicates a sustained downfall and formation of a falling wedge pattern.
Theoretically, the two conveying trendlines shown in the above chart will likely bolster ETH buyers to regain bullish momentum for the next leap. The altcoin is 4% short from an upside breakout of the key resistance, which could further accelerate the buying pressure for a $4,600 rally.
Conversely, if the Ethereum price continues to witness such large holders selling, the sellers would prolong the ongoing correction below $3,000 and seek support near $2,700.
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