Ethereum Price Teeters on 15% Drop as ICO Whale Dumps Another $7.6M ETH: Crash Imminent?

While the market does not appear to have acted brashly to the sell-off, today has seen a 1.48% markdown in the Ethereum price.

This marks a continuation of a slow decline for Ethereum over the past week, down 3.03%. While other notable altcoins have ridden the bullish waves this month, ETH has drowned.

However, today’s events have sparked a flurry of engagement, with trading volume up 43%, reaching $19.50 billion.

Ether ICO Whale Dump 3000 ETH: Is an Ethereum Price Crash Imminent?

In an October 24th X post, blockchain analytics service LookOnChain noted that a whale associated with Ethereum’s initial coin offering (ICO) had chased out another 3000 ETH, worth $7.64 million.

The same address previously sold 7,000 ETH in July, just before the Ethereum price took a 15% plummet, according to the report.

Out of a total of 254,908 ETH received during the Ethereum ICO in 2014, the whale still holds 37,070 ETH, worth roughly $94 million.

Upon closer inspection, technical indicators suggest a potential dip of a similar magnitude as the Ethereum price approaches a possible breakout from a bearish pennant pattern.

This pattern often represents a temporary pause in a prevailing downtrend.

ETH / USDT 1D chart, bearish pennant pattern. Source: Binance.

The concern for a potential drop is further supported as the MACD line appears to be amidst a crossover below the signal line, a move which, in recent history, has consistently led to significant dips for ETH.

If the pattern prevails and a breakout materializes, the price target would be set around $1500. However, a long-term proven support line favors an early bailout at around $2050, a 15% drop from current prices.

Maintaining a position above the 50SMA will be pivotal to avoid a crash. Otherwise, a retest of the lower support of the pattern on weak footing could trigger a breakout.

This New Low Cap Gem Could Be The Play This Cycle

While Ethereum continues to underperform, it is in question whether it is the right play this cycle.

As “meme coin supercycle” sentiment takes hold and coins like $GOAT and $MOODENG experience sudden rises to prominence, strategic investors may find it beneficial to diversify into newer low-cap meme coins with exponential growth potential.

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