Key Factor Behind Today’s Decline in Ethereum (ETH) Price
The digital currency market has undergone a notable correction of 3.47% in the last 24 hours. Additionally, leading cryptocurrency tokens have exhibited a similar price trajectory, breaching significant levels.
Notably, the foremost altcoin, Ethereum, has experienced the most substantial correction among the top 10 cryptocurrencies by market capitalization, with a decline of approximately 8%. Queries surrounding whether the price of Ethereum will revisit its low of $2.8K and the reasons behind Ethereum’s descent have contributed to a sense of fear, uncertainty, and doubt (FUD) in the crypto market.
This article delves into the prevailing market sentiments, price analysis, and potential short-term price projections for the Ethereum token.
ETH Price Fails To Surpass Crucial Resistance Level:
Following a period of neutral movement for around a week, Ethereum’s price, the frontrunner among altcoins, has failed to breach its crucial resistance zone. Consequently, it has registered a 7.30% correction within the last day, accompanied by a trading volume of $20.662 billion, reflecting a 7.83% change.
The primary reason attributed to the decline in Ethereum’s value is perceived to be a sell-off triggered by recent developments, reminiscent of the market reaction observed during the launch of the Bitcoin ETF in January of this year.
Furthermore, Ethereum has formed a triangle pattern in the 1-day timeframe and has remained within its confines since February. Given the current market conditions, it is anticipated that the price of ETH will revisit its support trendline.
Ethereum Market Sentiments:
The Relative Strength Index (RSI) has exhibited a sharp downturn in the 1-day timeframe, indicating a surge in selling pressure. Moreover, the moving averages depict a bearish convergence, signaling a continuation of the price decline.
The Moving Average Convergence Divergence (MACD) indicator has displayed a persistent decline in the green histogram, with its averages suggesting a probable negative crossover. This scenario underscores a bearish outlook for Ethereum in the immediate future.
Will Ethereum’s Price Witness an Upsurge?
In the event of a market recovery, Ethereum is poised to challenge its resistance level at $3,272.50. Sustaining the price at this level could pave the way for ETH to test its upper resistance threshold of $3,700 in the weeks ahead.
Conversely, should bearish sentiment persist in the crypto market, Ethereum’s price may retreat towards the support trendline of the triangle pattern. Failure to uphold the price at this juncture could lead to a test of the critical support level at $2,870.
