Ethereum

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After falling to $3,000, <a href="https://u.today/ethereum-eth-in-jeopardy-as-prices-tumble-xrps-rebound-flops-at-065-shiba-inu-shib-continues-to" rel="noopener noreferrer nofollow">Ethereum</a> has experienced a severe decline. Institutional investors selling off their ETH holdings appear to be the main reason behind this sharp decline. Ethereum's price has dropped sharply as a result of the sell-<a href="https://x.com/santimentfeed/status/1819991090415489306" rel="noopener noreferrer nofollow">off</a>.
The daily ETH/USD chart reveals a severe sell-off pattern. A number of significant support levels have been breached by the asset, including the 200 EMA, which usually serves as a solid floor during downturns. The price is continuously dropping below these important indicators, which also show a bearish trend: the 50 EMA and the 100 EMA. <img alt="ETH USD" data-entity-type="file" data-entity-uuid="c40a2d35-88f9-4288-bac3-7fc5852669c2" src="https://u.today/sites/default/files/inline-images/image_1065.png"><a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow">ETH/USD Chart by TradingView</a>
An important liquidation appears to be the cause of the sell-off as shown by the spike in <a href="https://u.today/easy-choice-tether-boss-picks-bitcoin-over-ethereum" rel="noopener noreferrer nofollow">ETH</a> trading volume. According to the RSI, which has dropped to about 31, Ethereum is oversold. This does not however imply that a swift recovery is approaching, particularly in light of the mood of the market right now.
ETF holdings sold by institutional investors are probably the cause of <a href="https://u.today/ethereum-eth-prediction-for-august-2" rel="noopener noreferrer nofollow">Ethereum's</a> sharp price decline. Exchange-traded funds or ETFs have gained popularity as a means of institutional cryptocurrency investment. But as the current price action shows, these investors' large-scale sales have the potential to seriously disrupt the market. Market prices are significantly influenced by institutional investors, who generally handle substantial sums of money.
A domino effect frequently occurs when these entities begin liquidating their holdings, aggravating the price decline as additional investors follow suit. According to the most recent price action, if the sell-off persists, Ethereum may be subject to additional downside pressure.
We might witness a lengthy period of bearish activity if Ethereum is unable to recover this level. Conversely, the RSI's indication of oversold conditions may draw in some buyers searching for a good deal.

Ethereum (ETH) Crashes to $2,800: Did ETF Spark Bloodbath?

U_Today

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