Here’s Why Ethereum Price Correction Is Far From Over 

Key Highlights:

• Earlier today, a whale wallet, 0xF436, had withdrawn 14,520 ETH for approximately $53 million from crypto exchanges, according to Lookonchain data.
• A double-top reversal pattern in Ethereum’s daily chart bolsters sellers for a potential breakdown below $3,500.
• On-chain analysis from Sentora highlights weak support levels at $3,116 and $2,698.

ETH, the native cryptocurrency of the Ethereum network, witnessed a sharp sell-off of over 4% during Friday’s U.S. market hours. The selling pressure in the crypto market has been gradually accelerating since last week as the broader market trend enters a post-rally pullback. As the on-chain data highlights weak support levels defending the Ethereum price, the current correction could extend to $2,500. Despite the bearish outlook, the crypto whales are actively accumulating ETH, signaling a strong buy-the-dip sentiment for a potential rally.

Ethereum Price To Face Thin Support Zones Below $3,500

In the last 5 days, the Ethereum price witnessed a sharp downfall from $3,942 to the current trading price of $3,535, registering a 10% loss. This downturn showed no signs of easing today, with over 192,994 traders liquidated across the broader market, pushing total liquidations to a staggering $864.89 million.

If the selling pressure persists, the ETH price is likely to be a bearish breakdown from the psychological level of $3,500. If the breakdown unfolds, on-chain data indicates weak support levels for buyers before the price hits the $2,500 level.

According to Sentora’s In/Out the money metric, Ethereum’s nearest support post $3,500 breakdown wavers at $3,160, where approximately 13.87 million addresses hold 6.115 million ETH. Furthermore, at an average of $2,698, around 13.32 million addresses hold 10.41 million Ether coins. 

That said, the $2,436 support holds a substantial 17.42 million volume from 13.44 million addresses, indicating a mass group of buyers are setting at this level.

Global In/Out of the Money | Sentora

The relatively small concentration of Ethereum at higher levels suggests weak support zones above $2,436, increasing the likelihood of bearish or deeper corrections. With fewer tokens held at these levels, there is less incentive for a major crowd to defend them, signaling a higher chance for breakdown.

While the short-term correction may concern retail investors, high-net-worth investors are leveraging this opportunity to accumulate more ETH coins. According to blockchain tracker LookOnChain, a whale wallet 0xF436 has withdrawn 14520 ETH (worth approximately $53 million) from crypto exchanges in the past 9 hours of reporting. 

Whale Acivity | Lookonchain

Additionally, this same whale bought 38,606 ETH worth 148.45 million for SharpLink Gaming in the last five days.

Historically, such active accumulation during price pullback has bolstered the price to hold crucial support and revert to a higher rally.

Double-Top Sets ETH For Major Breakdown 

The daily chart analysis of Ethereum price shows the recent correction has developed into a bearish reversal pattern called ‘Double Top.’ The chart setup displays a simple M-letter structure indicating the overhead supply in the market and a potential price breakdown from the neckline support.

Against the ETH’s last higher formation in price, the momentum indicators show a clearly lower high formation, accentuating the mounting selling pressure in the market.

Thus, a breakdown below $3,500 support will accelerate the bearish momentum and push the ETH price 7.5% down to the 38.2 Fibonacci retracement level at $3,250.

ETH/USDT -1d Chart

If this support fails to hold, the next best defense for Ethereum buyers lies at the 50% retracement level at the $3,000 psychological level.

Also Read: Litecoin Price For Bullish Rebound as Network Hits 1M New Funded Addresses