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 manipulation by 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 highlighted that 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.
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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 notes that 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 drop in 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.
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 expressed concerns 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 engaged in 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 liquidations among long positions.
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Doctor Profit remarked on the apparent transparency of these manipulations, suggesting that 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.
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
