Ethereum (ETH) is having a rough time. After a big sell-off, it’s struggling to stay above $4,200.
A Week of Losses and Liquidations
The past week has seen ETH prices drop almost 9%. This caused a wave of liquidations, with over $178 million in crypto positions wiped out in just 24 hours. Ethereum longs (bets that the price would go up) were hit the hardest, losing over $127 million. One trader even lost almost $6.2 million in just two days!
A Billion-Dollar Supply Shock?
Adding to the pressure, a huge number of ETH is about to be released from staking. We’re talking about 910,461 ETH, which is roughly $3.91 billion! This massive influx of ETH could really push prices down.
Big Players Buy the Dip
Despite all the turmoil, some big institutional investors are buying ETH. Bitmine Immersion, a major ETH holder, recently added a huge chunk, bringing their total holdings to almost $6.6 billion. Other large players followed suit, showing confidence in ETH’s long-term prospects.
Analysts’ Concerns and Long-Term Outlook
However, experts warn that things might get worse before they get better. Macroeconomic uncertainty and the upcoming Federal Reserve meeting could cause further sell-offs. On-chain data isn’t looking great either, with less activity and slower network growth.
Despite the short-term gloom, many analysts still see a bright future for Ethereum. Once the market absorbs the huge amount of unlocked ETH, the price could surge. Some are even predicting prices between $6,000 and $8,000 by the end of the year, if institutional investment continues.
The Big Question
The main question now is: can ETH hold above $4,000, or will the upcoming supply increase drag it down further? Only time will tell.
