- Ethereum trades at $3.2K, reflecting a 1.66% loss over the last day.
- The market witnessed a liquidation of $41.66 million in Ethereum.
As the broader crypto market remains under the grip of the bears, Ethereum (ETH), the largest altcoin, is facing a tough period and finds itself at a critical juncture. Surpassing the $3.5K mark for ETH is proving to be a weighty hurdle.
Ethereum has encountered consistent declines following its rejection at crucial resistance levels. The asset currently rests at a notable support near $3.2K, with the market closely observing ETH’s potential for a bullish rebound.
Notably, Ethereum’s consolidation phase is marked between $3.2K and $3.3K. The altcoin opened the trading day at $3,276 and mounted to a daily high of $3,335. The bull power turned off, and ETH slipped to its lowest price of $3,217.
The largest altcoin has lost over 1.66% in the past 24 hours. Due to the prevailing bearish price movement, ETH opted for a downward rally today. At press time, ETH traded at $3,222.
Furthermore, the market has observed a liquidation of $41.66 million worth of Ethereum during this period. In the meantime, the daily trading volume of ETH stays at $15.6 billion.
Contrarily, a whale has sold 10,070 ETH for $33 million in DAI at $3,280 per ETH, incurring a $1 million loss. The whale had withdrawn 24,029 ETH worth $81.3 million from Binance into 10 new wallets and now holds 13,959 ETH, valued at $45.48 million.
Is Ethereum Vulnerable to a Drop?
Ethereum’s four-hour trading chart infers a substantial bearish momentum. The asset should overcome a critical barrier for a steady upside correction. However, ETH’s price could be pushed lower if ETH fails to breach the $3.3K mark. A plunge to $3,104 would erase the recent gains and might delay the recovery.
On the bullish side, Ethereum’s price could redeem its lost momentum if it holds above the key support. Sustaining a position above $3.5K could renew the bullish pace for recovering the losses encountered over the past few days. Testing resistance at $3,648, and a breakout might direct to the former highs.
The technical indicators of the ETH/USDT trading pair have exposed the negative sentiment with both the Moving Average Convergence Divergence (MACD) line and signal line positioned below the zero line. This crossover indicates a broader bearish phase and can represent a correction or pullback within the downtrend.
Moreover, the Chaikin Money Flow (CMF) indicator, which assesses the capital flow, is found at 0.01. This suggests slight buying pressure, a sign of weak accumulation. The value is not strong enough to confirm a significant trend. Meanwhile, Ethereum’s daily trading volume has soared by over 39.66%.
In addition, the in-progress market sentiment of ETH is neutral to slightly oversold, as the daily relative strength index (RSI) is at 39.38. Particularly, the daily trading frame of Ethereum displays the short-term 50-day moving average below the long-term 200-day moving average.
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