Ethereum Plunges 10%, Whales Exit Stage Left

Ethereum (ETH) Drops Another 10% as Whales Stop Accumulating

Ethereum (ETH) has experienced a significant decline, dropping by nearly 10% on February 25. This decrease has pushed its market capitalization below $300 billion for the first time since early November 2024. Multiple indicators, including RSI and moving averages, suggest a bearish momentum. As ETH navigates this downturn, market watchers are looking for signs of either a continued decline or a potential reversal.

RSI Shows an Oversold State for Ethereum

ETH’s RSI is currently at 29 after dropping to 21.3 a few hours ago. This marks the first time since February 3 that ETH has entered oversold territory, indicating intense selling pressure. RSI measures the speed and change of price movements, helping traders identify overbought or oversold conditions. An RSI below 30 typically signals that an asset is oversold, while above 70 suggests it is overbought.

With ETH’s RSI at 29, it indicates that selling momentum may be exhausted, potentially setting the stage for a short-term rebound. However, oversold conditions do not always guarantee an immediate price recovery. If bearish sentiment persists, ETH could continue to face downward pressure before any significant reversal occurs. Conversely, if buyers step in at these oversold levels, a relief rally could follow.

ETH Whales Dropped After Reaching Its Highest Levels In One Year

The number of ETH whales – addresses holding at least 1,000 ETH – steadily increased throughout the last month, peaking at 5,828 on February 22, the highest level since February 2024. However, this upward trend has recently reversed, with the number now slightly declining to 5,812. This shift suggests that some large holders have started to reduce their positions, potentially contributing to the recent selling pressure on ETH.

Ethereum Could Drop Below $2,200 Soon

Ethereum price recently formed a death cross, where the short-term moving average crossed below the long-term moving average, signaling a bearish trend. Following this pattern, Ethereum’s price dropped below $2,5