ETH Price Plunges Over 1.4% as China Denies Any Active Negotiation with the United States

ETH, the native cryptocurrency of the Ethereum network, plunged over 1.4% during Thursday's U.S. market session.

ETH, the native cryptocurrency of the Ethereum network, dropped by over 1.4% during Thursday's U.S. market session. The slight pullback followed a broader market downturn as China denied any active negotiation with the United States on a potential trade deal. This pessimistic news impacted the overall market sentiment, increasing the risk of prolonged correction and impacting the ETH price.

As the risk of prolonged correction persists, the ETH price could face another breakdown as whales and retails investors hint at substantial sell-off.

Ethereum Onchain: 305K ETH to Exchanges & 63K ETH Whale Dump

Over the past two weeks, the Ethereum price bounced from a low of $1,385 to its current trading price of $1,766, presenting a 27.8% surge. This rapid bullish surge witnessed significant profit booking from whales and retail investors, signaling a growing sell-side pressure.

According to data shared by Ali Martinez, more than 305,000 ETH have been transferred to centralized exchanges over the past week.

Simultaneously, the crypto whales have reportedly offloaded over 63,000 ETH in just the past 48 hours.

These two metrics, namely increasing exchange reserves and decreasing whale holdings, often foreshadow short-term corrections as market supply heightens and bullish momentum diminishes.

ETH Price Stands at Make-or-Break Floor Amid Channel Formation

An analysis of Ethereum's daily chart shows that the recent price reversal bounced from the support trendline of the falling channel pattern. The pattern's two parallel-walking trendlines theoretically offer dynamic resistance/support to the asset before the price gives a major breakout.

With today's market drop, the ETH price is nearly 13.5% short of the challenging channel resistance around $2,000. If the buyers flip the overhead resistance into potential support, the altcoin will gain sufficient momentum to hit $1,000, followed by $2,875 and $3,400.

On the contrary, the channel pattern resistance stands as a major pivot level for the Ethereum price. The previous reversal from this resistance plunged the asset to 24%-36%, signaling a sell-the-bounce sentiment among investors.

If the market selling persists, the ETH price will likely revert from channel resistance and test another breakdown below $1,400.