Ethereum Price Slides Under $2,400, but On-Chain Data Tells a Different Story

Key Insights Ethereum price dropped nearly 4% after the CLARITY Act failed to advance in the Senate, adding to broader crypto selling. Exchange reserves shrink: About 159,000 ETH left exchanges in five days, while large wallets holding 10,000–100,000 ETH accumulated roughly 200,000 ETH. $2,270 support comes into focus: ETH remains below the $2,431 level, with the 50-day and 200-day EMAs near $2,270 as key downside supports. Markets priced a 92.3% chance of a 25-basis-point Fed hike, while ETH saw about $211 million in liquidations, mostly from long positions. The Ethereum price fell about 4% on Wednesday, trading below $2,400 after the Senate failed to advance the CLARITY Act. The news of the delay, coupled with the likelihood of the Fed raising interest rates by 25 basis points, led to crypto markets’ broad sell-off. The latest polls suggest that the Federal Reserve will most probably raise rates at its next meeting, which is now 92% likely to happen, according to the CME FedWatch tool. Meanwhile, the Senate vote counted fewer than 60 ‘yea’ votes, needed to proceed to the next stage, adding to bearish pressure on markets. Ethereum Whales Are Buying the Dip On-chain data suggest large investors are using this weakness to buy Ethereum. Based on data from CryptoQuant, it appears that more ETH has been withdrawn from exchanges than deposited for the last five consecutive days, with the total amount of ETH in exchange wallets decreasing by nearly 159,000 ETH. Although “whale” wallets (10,000–100,000 ETH) have seen a month’s increase of 200,000 ETH, smaller addresses (100–10,000 ETH) have offset that with nearly 192,000 ETH sold in the same period. Institutional sales have also skewed toward the bears, as U.S. spot Ethereum ETFs registered $142.3 million of net redemptions on Tuesday, in line with the selloff in crypto prices. In the past 24 hours, Ethereum futures have dropped by approximately $211 million in liquidations, with long positions (bull bets) bearing most of the losses ($184 million). A broad wave of heavy liquidations may lead to a short-covering rally if buying interest increases in the wake of the capitulation. Ethereum Price Prediction in Focus ETH price is currently below its recent pivot of $2,431 and under the 20-day EMA near $2,435. Its main support is located near the tight grouping of its longer-term moving averages at $2,270 (the 50-day EMA) and $2,266 (the 200-day EMA). Ethereum (ETH) Price Chart | Source: TradingView A break above this price level would maintain the overall bullish trend despite the recent price action. Meanwhile, on the higher end, a retest of $2,431 would be a bullish first step; failure to do so could expose the next support band near the $2,170–$2,150 region.