Ethereum (ETH) has flash-crashed below the important support at $2,600 to change hands at about $2,518 at the time of writing. The sudden drop in value made the cryptocurrency shed about 8.2 percent of its worth in a day, wiping over 28 billion dollars in its overall market capitalization.

This sudden drop made a liquidation wave on Binance, mainly clustered at the $2,650-$2,430 price area. Accumulation of long positions had occurred in this area earlier in the week as Ethereum made a brief run to $2,800. That sharp decline triggered a wave of stop-losses and forced liquidation orders, which increased the pace of the drop further.

Whales Capitalize on Ethereum Price Dip

Amid the crisis, a few big investors, popularly known as whales, utilized the slump. LookonChain on-chain data showed that a wallet believed to be connected to Ethereum software maker ConsenSys bought 2,825 ETH at a total of $7.48 million soon after the crash.

In the last fortnight, the identical address has bought a total of 160,736 ETH, worth $421 million, at an average of approximately $2,620. In another transaction early Friday, another whale is said to have purchased 48,825 ETH worth about 127 million dollars on Coinbase and Wintermute at an average price of $2,600.

This investor is already reported to be up with $30 million on previous ETH transactions. In this volatile situation, market analysts are providing mixed forecasts.

Bearish Momentum Builds as ETH Weakens

One of the most well-known analysts on X, Crypto Rover, indicated the possibility of Ethereum continuing to consolidate on larger time frames. Rover says that ETH is still in a parallel channel that has been developing since May and it may rally to $4,000 should it succeed in retesting important resistance areas.

The technical indicators paint a rather bearish picture. The daily chart Relative Strength Index (RSI) indicates neutral momentum with a minor bearish lean after the sell-off. The RSI is yet to move into the oversold region indicating the possibility of a continued move to the downside provided the sellers continue to dominate.

The Bollinger Bands have widened, with the ETH price slipping below the middle band (20-day SMA) at $2,592 indicating rising bearish momentum. A decline below the lower band at $2,401 may subject the cryptocurrency to further decline and the next significant support area is anticipated at around $2,250.

Ethereum Plunges 8% as Liquidations Shake Market

However, analysts say that any move higher than the $2,600-$2,750 area would restore the bullish outlook and $2,900 is a key resistance level to monitor.