Ethereum price at risk of crashing to $2,600 as 110K ETH floods exchanges

Amid bearish cryptocurrency market conditions, the Ethereum price risks a sharp correction due to a significant rise in the price of Ethereum held on cryptocurrency exchanges and increased profit taking. If this selling pressure continues to increase, ETH could fall to as low as $2,600.

Let’s examine the technical and cross-chain analysis to determine the health of Ethereum (ETH) and what’s next.

Ethereum price risks correct as 110,000 ETH flows to exchanges

The price of Ethereum fell 25% from its yearly high of $4,107, but has recovered to $3,358, where it is currently trading. Since ETH is trading between two major hurdles at $3,613 and $3,029, there is no directional bias yet. If ETH overcomes the previous hurdle, it could start to move higher. On the other hand, a breakdown of $3,029 could trigger a crash.

Given that the supply of Ethereum on exchanges has seen a slight increase of 110,000 ETH, a potential sell-off could be just around the corner. Typically, the excess ETH held on centralized platforms can be for sale, aka profit booking or as collateral. This measure increases during the top of the cycle as more investors want to take profits. The supply held on exchanges falls to the bottom as investors are not looking to sell and instead lock their holdings in cold wallets.

as a result of, Ethereum prices It could continue to decline in the near future.

Ethereum Whales Profits After Recent Collapse

The network’s Realized Profit/Loss Index saw massive spikes on December 23 and 26, indicating massive profit-taking activity from shareholders. Positive highs indicate profit taking and negative highs indicate surrender.

If the value of non-performing loans (NPL) is negative after a crash, this indicates that investors are giving up and it is a good area to buy. Conversely, a positive rise after a decline indicates that coin holders are not confident about the future rise and expect a further decline in Ethereum prices.

all in all, Ethereum price prediction Indicates that a decline is likely. As mentioned earlier, Ethereum needs to break the support level of $3,029 to initiate a correction that takes it down to $2,600. Supporting this bearish outcome is the influx of ETH on exchanges and profit-taking activity.