- Ethereum trading volume is down 32% in the past 24 hours.
- Uptober brought promise but ended with Ethereum’s uncertain price movement.
Ethereum, the second-largest cryptocurrency, is currently facing bearish pressure after showing signs of bullish dominance. While October brought positive momentum to major cryptocurrencies like Bitcoin and Ethereum, with both breaking key resistance levels at $28,000 and $1,700, respectively, Ethereum has encountered a recent setback, currently trading at $1,637.
The unexpected reversal has taken the crypto community by surprise, especially given Ethereum’s strong performance in the preceding week– it started by trading at $1,635 and surged to $1,734 on October 2 following news of the launch of the Ethereum Strategy ETF by investment management firm VanEck, available for trading on the Chicago Board Options Exchange (CBOE). However, as mentioned before, this bullish momentum couldn’t be sustained.
In addition to the price decline, Ethereum’s trading volume has seen a significant drop, falling by 32% in the past 24 hours to around $5 billion. Despite this decline, reports indicate that the approval of Ethereum Futures ETFs has attracted substantial capital inflows to Ethereum’s derivatives markets. Moreover, Bulls also continue to dominate the spot markets.
Meanwhile, a prominent blockchain data aggregator, Whale Chart has also captured attention in recent times over whale activity. Recently, an unknown wallet transferred 64,000 ETH worth $105 million to Binance. Prior to this, over 100,000 ETH worth $164 million were moved from Binance to an unknown wallet. Such large-scale transactions can have a substantial impact on market sentiment.
Will The ETH Bulls Win?
A closer analysis of Ethereum’s current price movements reveals an intense battle between bearish and bullish forces on the daily chart. The 9-day exponential moving average (EMA) has moved above the current trading price, settling at $1,652, while the daily relative strength index (RSI) stands at 49, indicating a neutral market sentiment. This suggests that Ethereum’s market is at a pivotal moment, with both buyers and sellers striving for control.
Ethereum has recently broken below the crucial support level at $1,666, raising concerns among traders. Should the downward trend persist, the next significant support levels to monitor are $1,577 and $1,539. Conversely, if Ethereum manages to breach the resistance at $1,687, it could pave the way for a retest of the $1,734 level. Beyond that, the formidable $2,000 resistance level awaits.
