Ethereum prices fell on Monday after risk-off sentiment continued in the crypto and stock markets, resulting in significant losses in the square.
Ethereum (ETH) fell to $2,400 on Monday from a high of $2,732 this month. The decline wiped out its market capitalization of $35 billion, down from $325 billion on May 14th to $289 billion.
ETH retreated after the large holder surrendered. According to Lookonchain, the whale lost 7,000 ETH, worth $16.8 million. Previously, the same address had withdrawn 13,479 ETH, worth $48.82 million from December 5th to January 13th. The whale still holds 6,479 ETH and is recognised a loss of $16.28 million.
Still, Ethereum fundamentals show potential price rebounds. First, Nansen’s data shows that more investors are transferring ETH from centralized exchanges to independent wallets. Exchange tokens fell 3.46% to 23.47 million on Monday. Total exchange supply has also declined to 19.45%.
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A falling exchange expenditure is usually bullish as investors show they are not trying to sell in the short term.
Another positive indication is that assets on the Ethereum network continue to grow despite wider market headwinds. BlackRock’s USD Institutional Digital Liquidity Fund (Buidl) is on a strong rise, as shown below. That assets skyrocketed from $640 million on January 1st to $2.9 billion.
Buidl Assets is approaching $3 billion Source: Tokenentminal
Ethereum price technology analysis
ETH Price Chart | Source: crypto.news
The daily chart shows ETH bottomed at $1,380 in April before rallying at $2,732 last week. It retreated as investors benefited.
Despite the decline, ETH is above the exponential moving average of 50 and 100 days. This is about to form a mini golden cross. The current pullback occurred after the price reached Fibonacci retracement level of 50%.
If this outlook continues, Ethereum could bounce back and retest at a 78.2% retracement level for $3,527 over the long term. Below the $2,000 support zone, this bullish scenario is void.
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