Eigenlayer Faces Strong Downtrend as Selling Pressure Intensifies

A significant market move has caught investors’ attention as a whale recently deposited 2 million Eigenlayer (EIGEN) tokens, worth $3.18 million, into Binance.

A whale recently moved 2 million Eigenlayer (EIGEN) tokens, valued at $3.18 million, into Binance, according to on-chain data. This transaction follows a previous withdrawal of the same amount two months ago, when the token was priced at $4.53.

The whale initially held EIGEN tokens worth $9.07 million, but as the asset's price declined to $1.59, their holdings depreciated by $5.89 million, highlighting the token's price volatility and raising concerns about investor sentiment.

A whale just deposited 2M $EIGEN($3.18M) into #Binance.

The whale withdrew 2M $EIGEN($9.07M) from #Binance 2 months ago, when the price was $4.53, and now the price is $1.59. He lost $5.89M after holding $EIGEN for 2 months!https://t.co/yMoeenzrfQ pic.twitter.com/WmGOoaKpr4

Eigenlayer (EIGEN) Faced Strong Downtrend as Selling Pressure Gathers Pace

The broader market trend for Eigenlayer is bearish, with the token currently trading at $1.61. Over the past 24 hours, its price has dropped by 8.06%, while the past seven days have seen a 16.41% decline. The cryptocurrency’s market cap stands at approximately $377.9 million, with a circulating supply of 230 million tokens.

Market volatility is evident in liquidation trends, with significant long liquidations occurring during key price fluctuations. The highest liquidation spikes were recorded in late September, early December, and late January.

Short liquidations have been less aggressive but saw notable increases in mid-December and early February. A key liquidation event occurred when Eigenlayer's price approached the $5.00 mark, and further long liquidations followed after the token dropped below $2.00.

Critical Support and Resistance Levels for EIGEN Token to Watch

The token is hovering near a crucial support zone between $1.60 and $1.58. If this level fails to hold, the next significant support lies around $1.50 or lower, as historical price data indicates weak demand in that area.

On the upside, the first resistance level is around $2.00, a previous support level that turned into resistance. A strong breakout above the $2.50 to $3.00 range would indicate a potential trend reversal, bringing relief to investors hoping for a recovery.

Technical Indicators Suggest Possible Short-Term EIGEN Price Rebound

EIGEN/USD daily price chart / Source: TradingViewRelative Strength Index (RSI) is at 30.83, indicating oversold conditions, suggesting the possibility of a short-term bounce. However, if selling pressure continues, the downtrend may persist.

Moreover, the MACD indicator is still bearish, with the MACD line at -0.028, below the signal line at -0.358. A potential bullish crossover in the coming sessions could signal a recovery, but confirmation is needed before expecting a sustained uptrend.