A dormant Ethereum whale has recently transferred 7,000 ETH, valued at approximately $13.8 million, to Kraken as the price of ETH dropped to $1,760 amid ongoing market volatility.

Currently, Ethereum's trading price of $1,917 remains below its realized price of $2,058, resulting in a 7% unrealized loss for the average holder, a situation that historically signals capitulation zones.

Immediate support for ETH is identified at $1,592; breaking this level could result in substantial losses for approximately 4.80 million ETH.

Despite the whale's recent activity, they still retain 30,070 ETH, valued at over $50 million, indicating potential for further selling pressure.

This significant transaction coincided with fears of a U.S. recession, contributing to ether's price decline, which reached its lowest point since October 2023.

In the past 24 hours, over $110 million in ETH long positions were liquidated, and negative funding rates on major exchanges indicate a rise in short-selling activity.

Over the past week, ETH has experienced a 10.64% decline, making it the weakest performer among major cryptocurrencies.

The market value of Ethereum has decreased by $46 billion in just one week, with ETH falling below the $2,000 mark for the first time in two years.

A spike in dormant circulation of ETH suggests that long-term holders are beginning to sell off their assets, further contributing to the bearish sentiment in the market.

Following the whale's transaction, ether was last priced at $1,900, reflecting the ongoing volatility in the market.

Large amounts of cryptocurrency moving to exchanges are often interpreted as signals for potential liquidation or as collateral for derivatives trading, which can lead to increased price volatility.

However, some analysts suggest that this recent drop might present a 'dip-buying' opportunity, given the surging trading volume and the relative strength index (RSI) being in oversold territory.