Ethereum faces growing market pressure while showing death cross indicators that predict more price drops. The price of Ethereum reached $2,600 on Thursday after dropping more than 35% since December 2023. Full-scale investor hesitance combined with active whale sales has driven ETH significantly downward.
The price decline in the token stems primarily from savings in spot Ethereum exchange-traded funds (ETFs). The recorded net outflows for Wednesday from these ETFs reached $40.95 million while their total influx surpassed $3.1 billion. Multiple investment funds are currently underperforming because of rising questions about Ethereum’s short-term market potential.
This giant whale just deposited 20,000 $ETH($52.84M) to #Kraken again, leaving 50,874 $ETH($134.8M).https://t.co/9AvK9JHVqS pic.twitter.com/nbS2zLOAR7
— Lookonchain (@lookonchain) February 13, 2025
Major Ethereum holders known as whales have intensified market bearishness through active token selling activities. The Kraken platform received a major deposit of 20,000 ETH (worth $52.8 million) from a large whale user.
Ethereum Struggles For Stability
The investor who sold 20,000 ETH in January holds about $134 million worth of Ethereum besides that current sale. The market perceives whale-scale vendor activities as a harmful driver since professional whales tend to sell their tokens before price slumps affect the broader market.
The market position of the token continues to diminish in essential revenue realms. It has collected $179 million in fees during 2022 yet multiple other blockchain systems including Solana, Jito, Tron, Tether and Circle have surpassed Ethereum in revenue. It faces mounting risks for its market position because of its decreasing market penetration.
The technical evaluation tools confirm a market prediction of falling prices. Ethereum daily chart shows a death cross pattern which emerges when its 50-day Exponential Moving Average intersects with its 200-day Exponential Moving Average. Ethereum experienced its recent death cross in August 2023 and the market value dropped by more than 20% soon after the warning signal appeared.
The Ethereum inverse head and shoulders pattern became invalid because prices dropped beneath $2,821 so a future bullish trend became less likely. Ethereum shows a double-top pattern that formed at $4,100 and could break down to $2,140 based on its current pattern structure. Ethereum plans to sustain its bearish phase if it falls below the essential support area of $2,140.
Market analysts expect prices to diminish to $2,140 starting from the present market value. During November 2023 the Ethereum coin had $1,530 as its main support level before it became resistance.
When Ethereum exceeds $3,090 average moving price it will disprove the bearish market outlook. Any price rise above the specific area will indicate that market demand is on the rise and potential bullish control scenarios are underway. The market dynamics for Ethereum continue to decline because the current period shows negative market sentiment.
