Ethereum is facing intense selling pressure following a red flag from on-chain data. A report indicates its 14-day average transfer count surged to 1.17 million, a level historically linked with major cycle turning points. Concurrently, ETH’s price has broken below all major moving averages, with technical analysis pointing toward a key downside target near $1,770.
Ethereum’s network activity and price charts are flashing similar warnings of a high-risk market zone. A sharp spike in Ethereum’s transfer count has raised historical concerns, as a new report notes such peaks preceded major downturns in 2018 and 2021.
The 14-day moving average for total transfers reached 1.17 million on January 29. “Large movements of funds may represent the movement of long-term holders, potential exchanges, or taking profits,” the report stated.
Meanwhile, technical data shows ETH trading around $1,875 after a 12% single-day drop. This decline has pushed the price significantly below its 20, 50, 100, and 200-day moving averages, which now act as a bearish resistance cluster.
Fibonacci expansion analysis points to a key downside target near $1,770. Momentum indicators remain heavily bearish, with the RSI reading around 19 indicating oversold conditions but no bullish divergence yet.
The MACD is also showing increasing bearish momentum. Traders are advised to exercise caution as the current transfer count peak resembles patterns seen before significant price declines.
