The price of the native token of the Ethereum network, Ether (ETH), has lost 6.7% of its value in the past 24 hours as traders have fled to stablecoins following the strong jobs report published by the United States Bureau of Labor Statistics (BLS) last week.
Data from the crypto analytics firm Lookonchain indicated that one whale sold a total of 24,029 ETH tokens valued at around $78 million in just a few hours as the price of this crypto asset fell below $3,000 for the first time since early November.
The $3,000 level is considered by traders a critical area of psychological support for market participants, and a drop below this key marker could unfold a much more dramatic sell-off.
Thus far in the session, the price has recovered, and ETH is trading at $3,030 at the time of writing this piece, but momentum seems to be favoring a bearish short-term outlook for this digital asset.
Data from Coinalyze indicates that $84.6 million worth of long positions in Ether (ETH) were liquidated in the perpetual market, while a report from OneSafe.io indicates that a total of $171.5 million in long positions were wiped during this recent ETH sell-off, resulting in total trading losses exceeding $100 million.
Can Ethereum (ETH) Key Supports Hold if Another Selling Spree Comes?
Trading volumes in the past 24 hours have surged by 194% and currently stand at $33.73 billion, according to data from CoinMarketCap.
These above-average moves indicate that this is more than just a take-profit move. The market is either flushing out excess leverage, or whales are preparing for a major setback that could take the price of digital assets back to November levels.
In the case of Ethereum (ETH), a recovery above $3,000 thus far in the session is a good sign, as sellers may have managed to trigger stop-loss orders set at this price by pushing down the price near the $2,900 area as they did.
If ETH manages to stay above $3,000 in the following days, chances are that this could market the beginning of another bullish cycle. The $3,000 level is also near the 200-day simple moving average (SMA), which is another key area of support.
Also read: Best Ethereum ICOs
For the 200D SMA to be broken, a major negative event would have to occur that could change the positive nature of the narrative that started back in November when Donald Trump won the U.S. presidential elections.
Since this is an unlikely scenario, this could be a good opportunity for traders to buy the dip and for late buyers to enter the crypto rally at much more affordable and advantageous price levels.
A New Web3 Crypto Wallet is Making its Way to Become the Leading Force in This Space
A new web3 crypto wallet is threatening the sector’s incumbents already by bringing to the table a set of new tools and features that will change how investors store their digital assets safely.
Best Wallet is a web3 storage solution that supports over 200 different cryptocurrencies across more than 60 blockchains and whose native token, $BEST, is currently being offered during a presale event.
With over $7 million raised already, Best Wallet ($BEST) promises to change how users store their cryptocurrencies by adding value on top of what the market’s traditional alternatives like MetaMask, Phantom, and Trust Wallet currently offer.
Among its most interesting features, Best Wallet offers investors the chance to spot promising projects in the web3 space whose tokens have not yet been floated to exchanges to increase their chances of generating 10x and even 100x gains.
This feature is called “Upcoming Tokens” and it has already delivered positive results to early adopters as it spotted and up-and-coming layer-two Ethereum scaling project called Pepe Unchained ($PEPE) that delivered gains of over 700% to those who bought the token during its 2024 presale event.
If you want to try out Best Wallet you can download the app on the Apple App Store or Google Play Store. Meanwhile, you can buy the $BEST token at a discounted price of $0.023575, which will only be available for the next 10 hours.
Visit the Best Wallet website to buy $BEST. Just connect your wallet and swap either USDT or ETH for this token or use a bank card to complete the transaction. Your $BEST investment is waiting.
