The cryptocurrency market is experiencing significant strain, with Ethereum bearing a substantial portion of the selling pressure. On Tuesday, the price of the second-largest digital asset fell below the psychologically critical $3,000 threshold, currently trading near $2,900. This decline is marked by a stark divergence in behavior: retail investors are selling in a panic, while certain large-scale investors are strategically capitalizing on the weakness. Concurrently, institutional capital is flowing out of spot Ethereum ETFs, exacerbating the downturn.
Institutional Exodus and Whale Accumulation Create Market Dichotomy
The flows for spot Ethereum ETFs present a concerning picture for institutional sentiment. These products witnessed net outflows totaling $234 million on Monday alone, a movement that significantly adds to the prevailing selling pressure.
In a contrasting development, data from the analytics platform Lookonchain reveals that a major investor, commonly referred to as a “whale,” accumulated Ethereum worth approximately $119 million during the market decline. This purchase was notably funded by borrowing stablecoins via the decentralized finance (DeFi) protocol Aave, indicating a leveraged bullish bet amidst the broader pessimism.
Technical Landscape Darkens After Support Failure
Ethereum’s value declined by more than 7% within a 24-hour window, with its price dipping as low as $2,895. Trading volume skyrocketed by nearly 99% to exceed $30 billion, a classic signal of capitulation and intensified selling activity.
The breach of the crucial $3,000 support zone has deteriorated the technical outlook. This level now transforms into a resistance barrier. The next significant support is situated around $2,800; a failure to hold there could open the path for a drop toward $2,600. For any short-term recovery to gain credibility, buyers would need to reclaim the $3,200 level. The Relative Strength Index (RSI) indicates weakness but has not yet entered oversold territory, suggesting the potential for further downward momentum.
Should investors sell immediately? Or is it worth buying Ethereum?
The daily closing price will be pivotal. A failure to close above $2,900 could signal an extended consolidation phase through year-end.
JPMorgan Launches Groundbreaking Tokenized Fund on Ethereum Network
Amidst the price volatility, a major fundamental development has emerged from the traditional finance sector. Banking giant JPMorgan launched its first tokenized money market fund, named “MONY,” directly on the Ethereum blockchain.
With an initial volume of $100 million, the fund provides qualified investors access to yields backed by U.S. Treasury securities directly via the blockchain. This move establishes JPMorgan as the first Global Systemically Important Bank (GSIB) to offer such a product on a public blockchain network.
The news reinforces Ethereum’s established role as the leading infrastructure for tokenizing traditional financial assets, although it has provided no short-term support for the cryptocurrency’s price.
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