**Summary:**
The price of Ethereum (ETH) has experienced a significant drop, with ETH trading at $3,119, down roughly 15% over the last 24 hours. Factors contributing to this decline include bearish sentiment among futures traders, a large liquidation event, de-risking behavior from investors, profit-taking by early holders and speculators, and the appearance of a bearish pattern on the charts. The sell-off has led to ETH losing support levels and triggering concerns of deeper corrections.
**Key Insights:**
1. Ethereum’s price decline is attributed to various factors including bearish sentiment among futures traders, significant liquidation events, de-risking behavior from investors, profit-taking activities, and technical patterns on the charts.
2. The appearance of a bearish pattern on the charts, with ETH losing support levels, suggests a potential extension of the correction to $3,000.
3. The Ethereum Foundation’s recent sale of ETH, along with the circulation of dormant coins aged 90, 180, and 365 days, indicates pressure from short-term holders selling at a loss.
4. The relative strength indicator crossing into oversold territory suggests a possible relief bounce in the shorter term, despite the overall bearish momentum indicated by moving averages.
5. This article emphasizes the risks involved in investment and trading decisions and encourages readers to conduct their own research before making any financial moves.
