Ethereum Price Decline After Rejection at $4,000 Resistance

According to CryptoPotato, Ethereum's price has been trending downwards after failing to break the $4,000 resistance level for the second time. The cryptocurrency has yet to recover from this setback.

On the daily chart, Ethereum has been forming lower highs and lows since it couldn't surpass the $4,000 mark. The market has also dipped below the 200-day moving average, which is around the $3,100 level. Currently, the price is retesting this moving average but facing rejection, suggesting a potential drop towards the $2,700 support level in the short term.

The 4-hour chart reveals intensified downward momentum, with the market briefly dipping below the $3,000 support level. Despite an oversold signal from the RSI leading to a recovery above this support zone, the price seems to lack the momentum to sustain a higher move and may be heading towards a deeper decline to the $2,700 area.

On-chain analysis shows the Ethereum Exchange Reserve metric, which tracks the amount of ETH held in exchange wallets, has risen above its 30-day moving average following the recent dip below $3,000. This increase could indicate the beginning of a capitulation phase, as many investors' stop losses were triggered below the $3,000 level.

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