- Ethereum whale secures $16.8M profit with a 50x short position ahead of ETH’s 5% drop.
- February’s historical 17.13% average return hints at possible ETH rebound.
An Ethereum whale secured a $16.8 million profit by shorting ETH ahead of a sharp price correction. Leveraging a 50x short position, the whale capitalized on Ethereum’s 5% price drop during a broader crypto market sell-off.
ETH briefly plummeted to $3,050, triggering over $81 million in long liquidations. The market downturn coincides with the implementation of the Trump tariff on February 1, introducing heightened volatility and anticipation of turbulence on Wall Street next week.
As of now, Ethereum trades at $3,065.40, reflecting a 5.76% drop in the last 24 hours. The market cap stands at $369.45 billion, down 5.75%. The 24-hour trading volume hit $24.43 billion, marking a 14% decline. The market cap ratio is 6.2%, signaling heightened volatility. Ethereum’s circulating supply remains at 120.52 million ETH, with no maximum cap in sight.
Analysts Eye Potential Recovery Amid Historical Trends
On the technical front, Ethereum is grappling with key resistance and support levels. The nearest resistance stands at $3,185, with a higher ceiling near $3,235. If ETH breaches these levels, it could rally towards $3,300. However, support sits at $3,050. A drop below this threshold could push ETH further down to $3,000 or lower.
The Relative Strength Index (RSI) currently reads 38.52, indicating that ETH is approaching oversold territory. The RSI average is at 50.36, highlighting a bearish divergence. This suggests that selling pressure could persist in the short term.
The 9-period moving average is at $3,185.66, while the 21-period moving average holds at $3,235.03. A recent bearish crossover occurred as the 9-period MA fell below the 21-period MA. This signals a potential continuation of the downtrend soon.
Historically, February has been a strong month for Ethereum, boasting an average return of 17.13%. These patterns offer hope for a swift recovery, even as short-term indicators reflect bearish momentum.
Investors should monitor key support and resistance levels closely. A break below $3,050 could trigger more selling, while a rebound above $3,185 may signal recovery. However, the RSI and moving average crossovers suggest that caution is warranted.
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