Ethereum Price Forecast: What Comes Next Following Ongoing Selling Pressure
Ethereum has been experiencing a sustained downtrend against Bitcoin since early 2023, with the breach of the 2022 low at 0.056 in 2024. The downward trend has persisted, indicating weakness in Ethereum compared to Bitcoin. The inability of Ethereum to match Bitcoin’s performance has been a source of frustration for investors. The recent sale of 1000 ETH by the Ethereum Foundation has not helped improve sentiment either.
The $2.6k support zone for Ethereum was recently decisively broken over the past couple of weeks, raising concerns among investors due to the consistent dominance of sellers. Ethereum formed an ascending triangle pattern on higher timeframes, suggesting a potential for recovery despite a 16.6% drop within the bullish pattern.
The daily wick from early August has been filled, signifying a retracement of the rally in February. The losses in the second half of July tested the $2171 zone, which was retested in early September. The Awesome Oscillator indicated strong bearish momentum with red bars on the histogram below zero, while the On-Balance Volume (OBV) reflected steady selling pressure.
The bearish trend has been prevalent since early August, with the price of Ethereum above $2.6k two weeks ago giving hope for a recovery. However, the decisive break of the support zone, which was the range high in early 2024, suggested further losses were likely due to the sellers’ continued dominance.
Ethereum’s weak performance relative to Bitcoin has raised concerns about the altcoin market’s ability to thrive. Older coins may struggle to attract new capital influx, especially during a potential bull run. It is important to note that the information provided does not constitute financial, investment, trading, or other advice and represents the writer’s opinion.
