- ADA declined nearly 20%, outpacing ETH’s 10% drop, signaling weaker buying interest.
- Large Ethereum holders offloaded over 110,000 ETH, contributing to its 13% weekly decline.
- Investors appear to shift funds toward ETH over ADA, indicating stronger confidence in Ethereum’s recovery potential.
As the global market experiences a decrease, ADA and ETH have both experienced reductions caused by ongoing market instability from President Trump’s latest announcement, in which he pledged to create a U.S. cryptocurrency reserve. After briefly surging above $2,500 following Trump’s crypto reserve announcement, Ethereum has plummeted to $2,070, wiping out all its weekend gains with ADA declining 14.0% for the past one week.
ADA Drops Sharply as ETH Shows Resilience
Data coinmarketcap shows that both cryptocurrencies experienced a significant decline, with ADA showing a more pronounced drop compared to ETH.This decline intensified during the early hours of March 4th, with ADA falling more aggressively than ETH, reaching nearly -20%, while ETH remained in the -10% range.
The more severe drop in ADA suggests that it may be experiencing higher market pressure or weaker buying interest compared to ETH. The fact that ETH is performing better than ADA suggests that investors may be rotating funds toward stronger assets amid market uncertainty. If the market stabilizes, ETH could recover faster, while ADA might take longer to regain bullish momentum.
Massive Liquidations and Whale Activity
Another critical reason why Ethereum is going down is the significant liquidation events in the crypto space. “Whales,” have been offloading their ETH holdings, adding downward pressure on the price leading to ETH decline by 13% in the past week.
WHALE WATCH: A WHALE WALLET WITH OVER 110K $ETH($235M) APPEARS TO BE SELLING $ETH.
— Mario Nawfal’s Roundtable (@RoundtableSpace) March 4, 2025
IN THE PAST 14 HOURS, THIS WALLET HAS TRANSFERRED 30,000 $ETH($68.55M) TO FALCONX AND GALAXYDIGITAL AND RECEIVED 7.76M $USDC FROM FALCONX.
THE WALLET MAY BE RELATED TO GENESISTRADING,
Source:… https://t.co/qpcetRBMeH pic.twitter.com/RHdPRT23mn
Recently, a whale wallet holding over 110,000 ETH ($235 million) has been actively moving assets, transferring 30,000 ETH ($68.55 million) to FalconX and Galaxy Digital within the past 14 hours. Additionally, the wallet received $7.76 million USDC from FalconX, suggesting a potential Ethereum sell-off or portfolio reallocation. Given that FalconX and Galaxy Digital are major OTC trading platforms, these transactions likely indicate an off-exchange liquidation strategy to minimize market impact.
As a result,ETH and ADA continue to face volatility, with ADA experiencing higher selling pressure. Whale activity and liquidations contribute to ETH’s decline, while market uncertainty may delay ADA’s recovery.
