"Eigenlayer Whale's $5.89M Loss: EIGEN Price Plummets, Bearish On-Chain Signals Loom"

Eigenlayer (EIGEN), a cryptocurrency project, has recently faced challenges amidst significant whale activity, raising questions about its potential recovery. A recent whale deposit of 2 million EIGEN, valued at $3.18 million, into Binance has sparked interest in the crypto community. The whale had previously withdrawn the same amount of EIGEN for $9.07 million just two months ago, but with the price now dropping drastically, this investor faces a staggering loss of $5.89 million.

The price of EIGEN has decreased from $4.53 to $1.59, leaving many wondering if this is a warning or a sign of an eventual recovery. At press time, EIGEN was trading at $1.61, showing a sharp 9.77% decrease within the last 24 hours. The price has seen a steady decline from the peak of $5.659, and it’s now below critical resistance levels. Key resistance levels were at $2.20, $3.03, and $3.47, indicating where the price may face difficulty breaking through. Support was also looking weak, with the $1.60 level showing potential for further support if the price doesn’t drop lower. Based on the current market trend, a brief consolidation near the $1.60 range could be expected. However, with the current downtrend, the likelihood of a potential further decrease towards the $1.42 mark looms unless market conditions change soon.

The on-chain signals for EIGEN remained bearish at the moment. Net network growth stood at 0.74%, which pointed to limited growth. The concentration of assets and large transactions were also showing negative trends with -0.08% and -2.22%, respectively. These signs reflected decreasing interest in EIGEN, potentially exacerbating the current downturn. Moreover, the token’s position “in the money” showed slight neutral sentiment at -0.04%, further underlining the current uncertainty in the market.

The liquidation heatmap for EIGEN revealed a critical point of interest at the $1.60 price range, where there is significant leverage. If the price remains near or falls to this level, further liquidations could trigger downward pressure. The map also shows some support zones around $1.55 and $1.60