The sudden liquidation of $6.5 million worth of Ethereum (ETH) by a prominent investor has sent shockwaves through the cryptocurrency market, sparking concerns about a potential downturn in Ethereum's price. This unexpected event has led to a flurry of analysis and speculation among market participants, as they try to understand the implications of this significant loss.

The whale's decision to sell off its entire ETH portfolio, amounting to 6,714 ETH at a unit price of $2,903, has resulted in a substantial loss of $6.45 million. This move has also led to a decline in investor interest in the altcoin, as indicated by the Relative Strength Index (RSI) trending below the midpoint. Furthermore, key averages have exhibited a bearish curve, suggesting a pessimistic price outlook in the near future.

As of now, Ethereum is trading at $2,902.42, with a 24-hour trading volume of $10.1 billion. The coin has experienced a decline of 4.07% over the past 24 hours, fluctuating between $2,935.95 and $2,894.15. Ethereum's live market capitalization stands at $348.6 billion. Market analysts predict that if the price surpasses the critical resistance level of $3,017, bullish momentum may resume, potentially breaking the descending channel pattern. However, a continued dominance by bears could lead to a descent towards this month's low of $2,650.

Several factors have contributed to Ethereum's downturn, including the delayed approval of the Spot Ethereum ETF by the Securities and Exchange Commission (SEC) and the recent deployment of the Dencun hard fork on March 13, 2024. While the upgrade aimed to alleviate escalating transaction fees and enhance platform scalability, it failed to bolster Ethereum's price. Instead, the coin faced rejection post-upgrade, triggering a steep descent that persists to date. This scenario has prompted market participants to question whether the upgrade has been a catalyst for Ethereum's ongoing downturn, further deepening the intrigue surrounding the coin's future trajectory.