Ethereum (ETH) faces mounting challenges as Bitcoin’s price drops below $93,000, dragging the broader cryptocurrency market with it. Ethereum, which had been struggling to maintain critical levels, is now testing key support zones. The bearish pressure intensifies, and with institutional support starting to wane, the market is looking for signs of resilience.
As of now, Ethereum’s price has fallen below the $3,400 mark, consolidating just above $3,300. The current price of ETH stands at $3,345, as it navigates a period of increased volatility. On the 4-hour chart, Ethereum has been forming a short-term triangle pattern, indicating potential for a significant move in the near future. However, the pressure is mounting as the price struggles to gain traction, and the dynamic moving averages point to a bearish trend.
The recent negative crossover between the 100-EMA and 200-EMA lines on the price chart signals a sell-off, further heightening concerns among investors. Additionally, the 4-hour Relative Strength Index (RSI) struggles to stay above the neutral level, hinting at weak demand and a lack of bullish momentum. This technical outlook suggests that Ethereum may face further downside if it fails to regain strength.
The situation is compounded by the recent outflows from Ethereum exchange-traded funds (ETFs). On December 30, Ethereum ETFs saw a daily net outflow of $55.41 million, with Fidelity withdrawing $20.41 million alone. With no significant inflows into Ethereum ETFs, institutional support is clearly faltering, which could weigh on the price.
Despite these bearish signals, Ethereum has not lost all hope. The support trendline remains intact, offering a potential cushion for the price. If Ethereum can hold above the $3,400 level, it could see a bounce-back, with the possibility of reaching $3,568 if the bullish momentum picks up. On the flip side, a breakdown could lead ETH to test the $3,244 support level.
In conclusion, while Ethereum faces significant hurdles, the potential for a V-shaped recovery remains. Investors will be closely watching how Ethereum navigates the coming days, with a breakout rally or a continuation of the bearish trend being key indicators for its next move in 2024.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Ethereum Whale Scoops $77M in ETH: Is $10,000 Within Reach for 2025?
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