Ethereum (ETH) Price Records a 4% Drop and Plunges to the $1,973 Level

On Thursday, March 20th, the Ethereum price recorded a 4% drop and plunged to the $1,973 level. This downtick comes as an immediate counter-attack by sellers after yesterday's FOMC meeting decision triggered a market-wide recovery.

The Ethereum price dropped 4% on Thursday and plunged to the $1,973 level. This downtick comes as an immediate counter-attack by sellers after yesterday’s FOMC meeting decision triggered a market-wide recovery.

While the overhead selling pressure hints at prolonged correction for the ETH coin, the whale investors continue to show their confidence in the asset’s growth potential.

Key Highlights

Three prominent Ethereum whales withdrew 14,217 ETH, worth approximately $29 million, from Binance earlier today.

These whales deposited the ETH into Aave, a decentralized finance (DeFi) platform, and afterward borrowed $12 million in USDT from the same institution.

The whales could use these funds to accumulate more ETH, showcasing their belief in the asset’s growth potential.

Despite the recent correction in the Ethereum price, three prominent Ethereum whales withdrew a substantial amount of 14,217 ETH, valued at approximately $29 million, from Binance earlier today. These massive withdrawals were promptly deposited into Aave, a decentralized finance (DeFi) platform.

Earlier this week, as the cryptocurrency market experienced a downturn, attention focused on FOMC minutes, which could provide further insights into the institution’s stance on interest rates. However, the market showed resilience and bounced back from the perceived selling pressure.

In another development, three prominent Ethereum whales withdrew a substantial amount of 14,217 ETH, valued at approximately $29 million, from Binance earlier today. These massive withdrawals were promptly deposited into Aave, a decentralized finance (DeFi) platform.

Afterward, the whales borrowed $12 million in USDT from Aave. These whales could use these funds to accumulate more ETH, showcasing their belief in the asset’s growth potential.

The active accumulation trend from whales despite the recent correction hints at buy-the-dip sentiment in the market.

ETH Price Needs This Resistance Breakout

For nearly two weeks, the second-largest cryptocurrency, Ethereum, has been meandering below the $2,000 level. The recent breakdown below this psychological barrier and the 61.8% Fibonacci retracement level was largely expected to escalate selling pressure and drive further correction.

However, a glance at the shorter time frame reveals that the price moved sideways, displaying indecision among investors with short-bodied candles. Notably, the lack of follow-up on the downside at least signals weakness in bears’ conviction which could result in the buyers’ attempt to regain higher prices.

In an optimistic scenario, the Ethereum price could reclaim the $2,100 resistance and set the stage to break an overhead resistance trendline. Since mid-December 2024, this dynamic resistance has undergone sustained downtrend and hence a potential breakout will signal a change in the market dynamic.