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As the broader cryptocurrency market grapples with significant downturns, Ethereum (ETH) and Solana(SOL) have emerged as some of the hardest-hit assets among the top ten digital currencies.
On top of that, recent allegations by market experts on social media suggest potential market manipulationby major players in the space, raising further concerns for investors. Ethereum Falls Below $2,600: Potential End To Altseason
Over the past few days, on-chain data has surfaced, indicating large-scale selling of Ethereum and Solana tokens primarily by Binance (BNB), the world’s largest cryptocurrency exchange.
Market expert Crypto Rover highlightedthat these sales, which occurred over a span of just 48 hours, have contributed to a staggering 7% drop in Ethereum and a 12% decline in Solana’s value. Related Reading Bitcoin Crashes: Experts Warn Of 6-Month Slump To $73,000 1 day ago
Ethereum has now breached its critical support level of $2,600, a point that analysts like Ali Martinez caution could signal the end of the altcoin season if confirmed on higher time frames.
Martinez notesthat the next significant threshold for the Ethereum holders is set at $2,300; falling below this level could jeopardize the psychologically crucial $2,000 mark.
For Solana, the situation is similarly dire. The asset has retraced below its major support level at $150, settling around $140. This decline represents a considerable 51% gap from its all-time high of $293 reached in January.
The bearish sentiment surrounding Solana is further underscored by a stark dropin network activity. Martinez pointed out that Solana’s active addresses have plummeted by 60%, falling from an impressive all-time high of 18.5 million in October to just 7.3 million. Solana’s drop in number of active addresses during the past month. Source: Ali on X Market Manipulation Allegations Arise
Amidst these troubling developments, voices within the crypto community are suggesting that the market turbulence may not be coincidental.
Experts like Marty Party have expressedconcerns about the role of Binance, asserting that the exchange may have offloaded its holdings in Solana and Ethereum to cover fines imposed by the Department of Justice (DOJ) while also profiting from liquidating leveraged futures positions.
Such actions have been characterized as “manipulative,” with Marty noting the timing of these sales. Doctor Profit, another market expert, also suggests that platforms like Bybit may have engagedin similar practices to recover “lost Ethereum” after its recent hack, fueling further speculation about the integrity of these exchanges.
Critics argue that these “market maneuvers” are indicative of a broader pattern of manipulation, particularly aimed at triggering mass liquidationsamong long positions. Related Reading Ethereum Price Crash To $2,000 Could Happen As Smaller Timeframes Turn Bearish 1 day ago
Doctor Profit remarked on the apparent transparency of these manipulations, suggestingthat market players are exploiting the naivety of average crypto investors.
Given the current climate, there is a growing call within the crypto community to shift away from centralized exchanges and traditional financial structures.
Advocates like Doctor Profit are urging investors to embrace decentralized finance (DeFi) and monolithic networks, emphasizing the importance of self-custody and minimizing reliance on institutions that may be susceptible to manipulation. The daily chart shows ETH’s price crash below key levels. Source: ETHUSDT on TradingView.com
For now, Ethereum has managed to stabilize at $2,390, which is nearly 50% below the record high of $4,878 reached during the 2021 bull market.
Featured image from DALL-E, chart from TradingView.com