Ethereum fell back to the $3.3K mark, losing by over 8%.
The market saw $187.38 million worth of Ethereum liquidated.
As the overall crypto market cap slips by more than 5% to $3.51 trillion, Ethereum (ETH), the largest altcoin, stands at a crucial crossroads. Clearing the $4K threshold of ETH seems to be hard to fetch.
The recent price momentum of Ethereum brought in a rally toward $4K. Over the day, ETH resumed its negative trading pattern, which might approach the lowest price at $3.2K. Should the downside correction persist, Ethereum may face a strong bearish wave. On the other hand, a Santa rally could likely help ETH recover its lost momentum.
ETH price chart (Source: CMC)
The altcoin opened the trading day on a modest bullish note and climbed to a daily high of $3,717. The bull power turned off, and the ETH reached its lowest price of $3,330. As of this writing, Ethereum has lost over 8.25% in the past 24 hours, trading at $3,363.
Notably, the market has observed a liquidation of $187.38 million worth of Ethereum as per Coinglass data. Concurrently, the daily trading volume of ETH has reached $57.75 billion.
On the other hand, a whale has deposited 22,746 ETH, worth $77.7 million, to Binance. This whale has withdrawn stablecoins from Binance to repay debts on platforms like Spark and Aave. The total amount the whale deposited to Binance has reached 31,968 ETH valued at around $122.3 million.
Will Ethereum’s Slide Continue?
ETH’s trading window revealed the short-term 50-day moving average above the long-term 200-day moving average. Besides, the daily relative strength index (RSI) is 24.68, indicating the altcoin is in the oversold zone and a potential buying opportunity.
Moreover, the ETH/USDT pair’s Moving Average Convergence Divergence (MACD) line and the signal line fall below the zero line, indicating a sturdy bearish trend. The signal line below zero line confirms that momentum remains weak and the possibility of continuing the downtrend.
ETH chart (Source: TradingView)
The Chaikin Money Flow (CMF), a technical indicator that assesses the capital flow, is found at -0.22, which hints that ETH is experiencing more outflows than inflows. Also, it suggests the market is dominated by sellers. Meanwhile, the daily trading volume of ETH has spiked by over 11.42%.
The four-hour price trend graph of Ethereum reveals the failure to get closer to the $4K mark. The current trading level signals a potential weakness of ETH, which might lead to further corrections, testing the $3,294 support. If ETH fails to hold this level, it may potentially reach the $3,250 range.
However, if the altcoin’s nearby resistance is broken, the ETH price could climb back to test $3,456. With further momentum, the asset can claim back the $3.6K. This level might be considered a key target for continuing the uptrend if buyers regain control.
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