Ethereum is Flashing Extreme Sell Signals! Here’s Next Level for ETH Price

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Ethereum has been on a bearish trajectory for the past few days following the PEPE coin’s hype. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is now flashing an extreme sell signal. While the sell signal is alarming for Ethereum holders, the crypto market’s inherent volatility means that predicting the exact next level for the ETH price remains a challenging endeavor. As Bitcoin price has failed to trade with the market’s expectation in recent days, ETH price is facing an increased struggle even to hold its support levels.

Ethereum Enters The Red Zone

Ethereum whales appear to be displaying signs of unease in response to considerable holdings being sold by both Vitalik Buterin and the Ethereum Foundation.

Notably, two prominent Ethereum whales offloaded an aggregate sum of 19,090 ETH, equivalent to roughly $35.7 million, on Uniswap following the Ethereum Foundation’s sale of 15,000 ETH ($29.7 million) to Kraken. These significant transactions have rattled the Ethereum community and sparked apprehension among investors.

The latest moves by Vitalik Buterin and the Ethereum Foundation have sparked discussions about the potential consequences for the cryptocurrency’s future and the impact of such extensive selling on the market. Some experts suggest that these sales could be a reaction to the recent surge in meme-based assets such as PEPE coin within the crypto market.

Moreover, gas fee on the Ethereum network is on a meteoric rise as crypto analytics service WhaleAlert has revealed that a trader recently paid a staggering 64 ETH, equivalent to about $118,600, in transaction fees for a single transaction.

At present, elevated gas fees seem to contradict expectations. This situation could be attributed to the recent surge in meme coin popularity, which has led to heightened network activity and congestion over the weekend. The bottleneck, partly driven by large-scale panic selling and skyrocketing prices, may diminish the profits earned from these meme coins, particularly for smaller individual investors.

Will ETH Price Drop More?

Ethereum faced significant resistance at the $2,000 mark and subsequently began a new downtrend. The digital currency slipped below the crucial support levels of $1,920 and $1,900, mirroring the downward movement of Bitcoin.

ETH’s value plunged to nearly $1,835 before bottoming out and consolidating losses. At present, the digital asset is trading below the 100-hourly Simple Moving Average. On the hourly chart, a significant bearish trend line is taking shape with resistance at around $1,900.

As of writing, Ethereum’s price trades at $1,860, declining over 3.55 in the last 24 hours. The $1,900 level represents the immediate resistance which is close to the 50% Fib retracement level of the recent drop from the $1,921 peak to the $1,835 low.

If the ETH price drops below the $1,820 level, a severe downturn may occur in the price chart. A drop below the EMA-100 trend line on the daily price chart will send ETH price to the fear zone near $1,650.