Why Is Ethereum Price Down To $2,200 Today?
11 December 2023 - 8:45PM
NEWSBTC
The Ethereum price has been among the worst hit in the flash crash
that took place on Monday. The crash sent the asset’s price down
below $2,200 for the first time in the last week and has continued
to trend low around this point. As the market shows a bit of
recovery momentum, questions remain about what could have triggered
the crash. Ethereum Price Fell Because Whales Have Been Selling One
of the most obvious causes of the flash crash that affected the
Ethereum price is the fact that large holders have been selling.
This month, ETH hit its highest level in the last year and this
sent a lot of investors back into profit. Now, since there has not
been a complete bullish turnover of the crypto market, there are
expectations that the market could crash and investors are trying
to secure profits before this happens. Related Reading: Crypto
Market Experts Predict When Cardano (ADA) Price Will Cross $7
Crypto analyst Ali Martinez flagged the selling from these large
holders in a post on X (formerly Twitter) on Sunday. According to
him, these large holders had actually begun selling when the price
had first crossed $2,300. This means that the selling pressure had
been mounting for a while before being reflected in the price. The
whales who hold more than 10,000 ETH in their balances had been
reducing their holdings toward the end of November. By December,
their holdings had fallen to their lowest point in the last three
months, showing proof of massive sell-offs by these whales. ETH
price at $2,242 | Source: ETHUSD on Tradingview.com Uncertainty
About Macro Factors Macroeconomic uncertainty has also played a
role in the crypto crash that sent the Ethereum price to $2,200.
One example of this is the CPI data release that is expected to
take place on Tuesday. As investors eagerly await the results from
the announcement, market fluctuations are expected. Related
Reading: Why Is XRP Price Up Today? Ripple’s Massive Buyback May
Have The Answer The November inflation data is also expected to be
released this week, as well as the Fed’s decision and statement
happening on Monday. Ahead of these events, high volatility is
always expected as investors move to secure some of their
positions. Nevertheless, Ethereum has begun to show some bullish
momentum once more. It has since bounced from its lows of $2,170
and is back up above $2,000, where bulls are already providing a
lot of support. If Bitcoin’s price continues to rise, Ethereum
could reclaim the $2,300 level before the day is over. The price of
ETH is sitting at $2,238 at the time of this writing, down 4.50% in
the last 24 hours. Featured image from Quora, chart from
Tradingview.com
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