Ethereum Down 7%. Will ETH Fall Below $2000?

• Ethereum price is down 3% in the past 24 hours.
• Ethereum long-term holders surpass Bitcoin, raising liquidity concerns.

Ethereum, the second largest cryptocurrency by market capitalization is now trapped under the bearish pressure. It had a 3% dip in the past 24 hours and 7.28% in the past seven days, currently trading at $2344. Despite this downfall in price, Ethereum’s long-term holders have now surpassed those of Bitcoin, marking a significant milestone.

However, the surge in long-term holders also raises concerns about reduced liquidity and potential obstacles to short-term price performance. While this phenomenon is generally positive during the accumulation phase, it could impede immediate price movements.

Additionally, recent blockchain analytics from PeckShieldAlert reveal significant Ethereum transactions. The address associated with Celsius has transferred approximately 13,000 ETH ($30.87 million) to Coinbase and 2,200 ETH ($5.12 million) to FalconX, indicating notable market activity in the past 24 hours.

Notably, Celsius and a prominent institution in the bankruptcy liquidation phase, FTX, have been actively engaged in massive crypto asset transfers recently. On January 20, FTX moved 207 WBTC worth $8.6 million and 1150 ETH, valued at $2.85 million, to Wintermute. Additionally, FTX initiated the transfer of 135 WBTC, totaling $5.6 million, to Binance. These transactions hint at a major sell-off move by both.

Bearish Days Ahead?

The daily chart of ETH shows a bearish trend, with the 9-day exponential moving average (EMA) currently positioned above the trading price at $2429. However, the daily relative strength index (RSI) suggests a nearly oversold condition, standing at 46.

ETH Price Chart, Source: TradingView

On the downside, failure to clear $2305 might trigger further declines, with initial support at $2280 and a more significant level at $2209. A breach of the latter could lead to a test of the $2199 support, potentially marking a deeper correction.

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