Ethereum recently experienced a strong rally following the U.S. election, with prices rising to $3,446 before hitting resistance. This 20% gain in Ethereum price, fueled by favorable market sentiment, has since leveled off due to profit-taking activities. This selling pressure has held back further growth, bringing Ethereum to a support area of around $3,100. While the short-term trend remains positive, indicators point to a potential slowdown in the bullish trend.
Ethereum Price Stalls Below $4,000 Amid Profit-Taking and Whale Movements
Ethereum’s post-election price rally, which pushed the cryptocurrency to multi-month highs, has now slowed. Profit-taking among investors appears to have dampened the rally, pulling Ethereum price back to the $3,114 level, which currently acts as key support. For instance, in line with the profit-taking spree, Tron founder Justin Sun capitalized on the recent rally by depositing 19,000 ETH at the crypto exchange HTX.
Despite reaching a four-month high, Ethereum has yet to break the $4,000 level, a psychological resistance that has proven challenging.
Adding to the complexity of the market, recent whale activity has introduced mixed signals. Data indicates that a notable whale wallet recently accumulated around 18,049 ETH, signaling bullish interest.
However, contrasting movements include significant deposits to Binance by other large holders, suggesting a possible sell-off. Such actions could prevent Ethereum from advancing beyond current resistance levels. This is because substantial deposits on exchanges often signal impending liquidation.
In the most recent ETH whale movementstwo large holders deposited 11,286 ETH, worth $36M to Binance, signaling potential sell-offs.
Such activity underscores the cautious optimism within the crypto market. While accumulation signals upward momentum, large transfers to exchanges place downward pressure on Ethereum price.
MACD and BBP Indicators Signal Weakening Bullish Momentum
Moreover, the technical landscape for Ethereum price shows potential bearish signals. The Moving Average Convergence Divergence (MACD) indicator suggests waning momentum, as the MACD line, while still above the signal line, shows flattening histogram bars. This indicates that while there is bullish pressure, it may not be robust enough to drive prices past key resistance points. Should this momentum continue to weaken, ETH ability to hold above support levels could be at risk.
In addition, the Bullish Bear Power (BBP) indicator reflects similar market sentiment, as readings indicate a recent upward movement followed by signs of leveling off. The failure to reach new highs in BBP implies that bullish strength is not currently sufficient to breach the $4,000 level. A continued drop in BBP values may empower bearish forces, raising the risk of a deeper correction if buyers lose control.
Outlook For ETH Price As It Tests Support Levels
For Ethereum to maintain its upward trajectory, it must hold above key support at $3,115, which aligns with the 38.2% Fibonacci retracement of the October 2023–March 2024 uptrend. A break below this level could open the door for a more pronounced correction, with the next support sitting at the 200-day Simple Moving Average around $2,953.
On the other hand, if bullish momentum resurges, Ethereum prediction signal attempt to challenge the $3,490 resistance and reach the $4,000 threshold. At press time, Ethereum is trading at $3,130.67, down 4.79% in the last 24 hours. The price has seen a drop from a high of $3,281 earlier today.
✓ Share:
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source link
<p>The post Why Is Ethereum Price Stuck Below $4,000? first appeared on CoinBuzzFeed.</p>
