Ethereum's Value Plummets by 3.05% to $2,476 after Failing to Sustain above $2,700
ETH Slides 3.05% to $2,476 Amid Intense Selling Pressure and Resistance at $2,800
Ethereum has experienced a pullback, trading at $2,476 following a strong rejection at the $2,700 price level. Over the past 24 hours, the cryptocurrency has dropped by 3.05%.
The decline commenced two days ago when ETH hit a low of $2,463,after the rejection. The retreat comes after a significant rally that saw Ethereum surge over 40% in the past month, helping it recover the $2,500 mark following a drop toward $1,800.
Data from the market indicates an intensified sell-off, with aggressive sell orders outnumbering buy orders. Whale activity shows a bearish turn, with large holders offloading more than 188.6K ETH in a single day, according to IntoTheBlock's Large Holder Netflow metric.
Spot market activity supports the sell-dominated narrative, with 113.1K ETH sold compared to only 90K ETH bought, resulting in a negative delta of 22.53K in the past day.
The $2,800 level presents a substantial resistance zone due to the presence of a cluster of investor cost basis levels around this price point. These investors, who have been underwater for months, may add substantial sell-side pressure as Ethereum approaches this zone, creating a natural ceiling for price advancement.
The futures market reveals growing caution among traders, with the Taker Buy-Sell Ratio dropping sharply in Ethereum's derivatives market. Technical indicators show bearish momentum, with tightening Bollinger Bands and a MACD crossover.
ETH continues trading above key short and mid-term moving averages on the daily chart, suggesting the longer-term trend remains healthy. However, the Bollinger Bands have begun tightening and the Relative Strength Index is no longer overbought, hinting at potential volatility and waning momentum.
The market could be susceptible to sudden volatility due to the close correlation between the Open Interest in Ethereum futures and options contracts and price movements. If selling pressure around $2,800 intensifies from both futures traders and break-even sellers, Ethereum may face a correction back to the $2,200 support before any new rally. Bulls must defend this crucial support to prevent a drop below the $2,000 mark. Further price declines are possible if selling pressure persists.
- The decline in Ethereum's price, currently trading at $2,476, has been influenced by intense selling pressure, as seen in the NSE (National Stock Exchange) and cryptocurrency markets.
- Amidst this selling pressure, a substantial resistance zone exists at $2,800, due to a cluster of investor cost basis levels and the potential selling from break-even sellers, posing a challenge for Ethereum investors looking to invest in this cryptocurrency.
- In the face of this selling pressure and potential resistance, technology and finance industry experts are closely monitoring the developments in Ethereum, watching for any indicators that could signal a potential shift in the market trend, such as changes in whale activity or the Bollinger Bands tightening.
