The realm of cryptocurrencies remains uncertain as the actions of a significant crypto whale have sparked considerable worry. This particular whale recently executed a transfer of 12,374 ETH to Compound and subsequently borrowed $31.4 million in stablecoins. In the event that Ethereum's price plunges to $2,984, the whale's long positions will be automatically closed. Over a span of four days, Ethereum has seen a decline from $3,500 to $3,124, marking a notable drop of over 10%. This price decrease since Monday has instilled significant unease regarding the possibility of further downward movements.

Ethereum and Bitcoin Price Decline

The cryptocurrency market is witnessing a downturn, prompting certain whales to seize opportunities amidst the chaos. Notably, a whale engaged in a transaction on Binance acquiring over $30 million worth of 9,425 ETH. The total value of transactions undertaken by this whale reportedly touched $120 million.

Among the various cryptocurrencies acquired by the whale were popular tokens like BNB, MATIC, LINK, AVAX, as well as meme coins including Shiba Inu, Dogecoin, Pepe Coin, and Floki.

There exists a correlation between the decline in Ethereum and Bitcoin. Reports indicate that major investors and miners are potentially responsible for the downturn in Bitcoin. Market analyst Charles Edwards highlighted that long-term Bitcoin investors are actively offloading their holdings.

Data from Glassnode shared by Edwards reveals a negative flow of 374,000 Bitcoins, estimated to be valued at $24 billion, depicting a movement of BTC towards exchanges.

Outlook for Ethereum (ETH)

The potential liquidation of the Ethereum whale involved in multi-million dollar transactions could escalate fear within the market. A drop to the liquidation threshold of $2,984 might trigger a further descent and lead to increased liquidations.

Despite the challenges, Ethereum is still attracting buyers at the $3,200 mark post a 5% decline today. The reduced price of ETH has caused its market cap to dwindle to $376 billion, with a trading volume of around $20.7 billion post transactions.