As a seasoned analyst with over two decades of experience in financial markets, I’ve seen my fair share of bull and bear cycles. Looking at Ethereum (ETH) today, it appears to be struggling under the weight of resistance levels, with a short-term outlook that remains vulnerable to further declines.
Currently, Ethereum‘s price is at $2,315, but it has shown a 24-hour volatility of only 0.7%. Despite this slight fluctuation, the market cap stands at a substantial $278.49 billion, with a 24-hour trading volume of $13.01 billion. Unfortunately, Ethereum’s price is under pressure, finding it challenging to regain its footing after falling below crucial support levels.
If the cryptocurrency is now valued below $2,350, its immediate future appears uncertain unless it manages to surpass crucial resistance levels.
Decline and Technical Resistance
Instead of surmounting the $2,450 barrier, Ethereum dipped after it, falling beneath $2,400 and then $2,350. It momentarily touched a low at $2,253 before trying to stabilize. Although there was a slight uptick above $2,285, Ethereum remains below the $2,310 level and the 100-hour Simple Moving Average (SMA).
The price level at approximately $2,300 is gathering strong opposition, and there are sturdier obstacles at around $2,360. This resistance aligns with the 50% Fibonacci retracement point of the recent fall from $2,466 to $2,253. Furthermore, a bearish trend line on the hourly chart adds weight to this resistance barrier.
If Ethereum surpasses $2,360, it could potentially rise toward $2,420. However, if it fails to break through this level, further decreases may occur, with potential support found at $2,265 and $2,250. A fall below $2,250 might cause the price to drop to around $2,200 or potentially as low as $2,150.
Photo: TradingView
RSI and MACD Indicators
The technical analysis indicates potential downward movements ahead, as the RSI for Ether versus US Dollar is less than 50, indicating reduced buying strength and suggesting that selling pressure continues to dominate the market.
The Moving Average Convergence Divergence (MACD) continues to indicate a bearish trend, weakening its momentum, suggesting that Ethereum’s chances for a significant rebound are minimal unless it manages to surmount the mentioned resistance levels.
In the near future, Ethereum’s price may continue falling unless it manages to exceed $2,360 as a resistance level. Indications from both RSI and MACD suggest a negative trend, making a substantial recovery unlikely. If Ethereum doesn’t push beyond its current levels, there might be further losses, intensifying the bearish sentiment in the market.
Analysts Weigh In on Ethereum’s Struggles
Beyond the technical hurdles, there’s a noticeable shift in public opinion towards Ethereum. At the moment, Ethereum has dropped approximately 50% from its record high of $4,800. Analysts attribute some of Ethereum’s persisting challenges to problems such as inadequate network scalability.
According to data from the blockchain, significant Ethereum investors (referred to as “whales”) have ceased purchasing and are instead selling their assets. This selling trend is contributing to the ongoing decline in Ethereum’s price. Notably, analyst Ali Martinez, who specializes in on-chain analysis, highlighted this whale activity as a significant factor behind Ethereum’s current price instability. He cautioned that if these big investors do not resume buying, there is a possibility that Ethereum’s price could fall even more.
As a researcher, I find myself in agreement with Kyle Samani, a partner at Multicoin Capital, who recently pointed out the interoperability and user experience challenges faced by Ethereum. He elucidated that users are often inconvenienced by slow transaction times, high fees, and complications when transferring assets between platforms. These difficulties put Ethereum at a competitive disadvantage against other digital currencies such as Bitcoin and Solana.
Read More
Sorry. No data so far.
2024-09-17 13:33