The bear market hits during a heat wave in the crypto industry. This fall is likely to take much longer than initially expected by analysts. For bitcoin, it's a disaster, but it's not a sea to drink for seasoned investors. For Ethereum, on the other hand, the situation is unusual and questions the resilience of the network. A philosophical question arises here with particular acuteness: can an asset be worth less while serving more?
In brief
- Ethereum has fallen 21% in one month, but its network remains very active despite everything.
- Decentralized exchange volume jumped 36% during the recent market decline.
- Whales are buying the dip, but a sleeping whale sold 27,585 ETH.
- Support at $1,551 separates a sustained recovery from a relapse to the lows.
Ethereum holds up on its network as its price collapses
Ethereum has lost 21% in one month, a brutal fall that would put most assets in crisis zone. Yet network metrics tell a different story about the health of the protocol. DEX volume jumped 36% during the decline. It increased from 0.9 to 1.3 billion dollars between June 22 and 24.
Daily transactions on the Ethereum network remained strong around 2.7 million per day. Stablecoins remained anchored near $158 billion, losing just 2% for the week.
Real activity has not collapsed with the price of Ethereum in financial markets. This dissonance creates a fascinating paradox for crypto market observers.
“ ETH/BTC is still in our long-term buy zone. “, underlines CrediBULL Crypto on X.
The market punishes Ethereum, but its usefulness remains intact for users.
ETH whale war divides crypto market
Big players in the Ethereum market are waging a silent war on decentralized exchanges. On one hand, Lookonchain spotted a new wallet withdrawing 17,675 ETH from Binance, or $28.58 million.
On the other side, Onchain Lens reported that a dormant whale sold 27,585 ETH for $44.84 million after seven years of complete inactivity. A trader was liquidated on a 25x long position, losing $1.9 million. He then opened a new, equally risky position in the market.
This whale war is creating additional volatility in the crypto market and on Ethereum. Each side has its strong arguments to justify its position. Buyers are betting on price recovery in the medium term. Sellers take their profits after years of patient waiting.
The technical levels that will decide the fate of Ethereum
Support at $1,551 separates a whale-led rally from a relapse to June lows. Ethereum is currently trading around $1,560, just above this critical level for traders.
Resistance at $1,683 must be breached to consider a stronger rebound towards $1,724 and $1,765.
The RSI remains weak at 38.34, below the moving average of 38.79 which indicates continued weakness. Crypto Tony observes a possible triangle formation on the crypto market and Ethereum.
“ We see series of 3 waves from the lows, which suggests the formation of a triangle “, he stressed. A consolidation lasting several weeks could precede a decisive movement on the Ethereum and crypto markets.
Key figures of the Ethereum market
- $1,560: ETH price at time of writing;
- 21% drop over one month for Ethereum;
- 36% increase in DEX volume during decline;
- 17,675 ETH withdrawn by a buyer whale;
- 27,585 ETH sold by a sleeping whale.
Ethereum is holding up on its network while its price comes under pressure from current financial markets. Bitcoin disappoints by falling below $60,000, closely monitoring the threshold of 59,000 before the American PCE. Ethereum could emerge as a winner if support holds strong even today.
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