On August 2, the price of Ethereum (ETH) fell below $3,500 due to increased selling pressure from major holders and economic instability. The article examines the key factors influencing this situation.
Market Dynamics
Ethereum's decline occurred amid significant fund movements in the market. Major transfers by key figures such as Arthur Hayes signal increased market pressure. "The recent movement of over $100 million in ETH to exchanges signals strong sell pressure in the current market." — Arthur Hayes, former CEO of BitMEX. These asset movements raise concerns about market stability.
Economic Factors
Recent economic changes, such as the U.S. Federal Reserve maintaining interest rates and new tariffs, exert pressure on both traditional and crypto markets. Despite the price drop, institutional players continue to accumulate ETH, indicating some confidence amidst the volatility.
Ethereum Outlook
Historically, such price drops correlate with increased volatility and subsequent stabilization phases. Observations show that ETH's active addresses have reached a two-year high, indicating robust network usage despite lower prices.
Thus, Ethereum's drop below $3,500 reflects not only market sentiment but also the development of economic factors. While volatility remains high, institutional demand structure may play a key role in future growth.
