Ethereum Drops Below $2,500, Whales Transfer 1,546.69 ETH

Ethereum, the second-largest cryptocurrency by market capitalization, has recently experienced a notable decline, falling below the $2,500 mark. This drop follows a period of consolidation above this level, suggesting a potential change in market sentiment. The price of Ethereum has been fluctuating within a range of $2,400 to $2,800, forming an ascending triangle pattern. This pattern indicates that Ethereum may test lower support levels if it fails to break out of its current range.

The decline below $2,500 has sparked concerns among analysts, who predict that Ethereum could extend its decline to test the support range between $2,260 and $2,100. This forecast is based on current market conditions and the potential for further volatility. However, it is crucial to recognize that these are analyst forecasts and not guaranteed outcomes.

Despite the recent drop, Ethereum is poised to close May with a positive return for the first time in 2025, following a nearly 50% price surge this month. This positive return is a significant development, as it indicates that Ethereum has been able to maintain its value despite the broader market volatility. However, a bearish divergence has emerged, which could potentially lead to further declines in the near future.

The bullish argument for Ethereum remains robust if the price action stays above the $2,500 mark. Another retest of the $2,800-$3,000 range may occur shortly, depending on market conditions. However, long liquidations between $2,600 and $2,700 could potentially pull Ethereum downward, further complicating the market outlook.

Two Ethereum ICO whales transferred 1,546.69 ETH to a centralized exchange, adding to the market's volatility. Additionally, whale James Wynn has suffered a $12 million loss in the past 24 hours, with their position dropping from $760 million to $279 million. Wynn has been actively reducing their position, lowering the liquidation price of a 40x leveraged BTC long to avoid liquidation. This move by Wynn, who previously faced liquidation risk, highlights the cautious sentiment among large investors in the cryptocurrency market.