Ethereum's market cap drops 2.54%, showing a bearish trend amid global crypto decline.
Technical data point to Ethereum's bearish momentum and potential oversold reversal.
Ethereum ETFs trigger a "sell-the-news" reaction, causing price decline and increased selling pressure.
The cryptocurrency sphere has experienced a 2.31% decline in market capitalization, shrouding Ethereum’s market status in uncertainty. With the market cap presently anchored at $2.15 trillion and trading volume floating at $64.8 billion, this downturn has profoundly influenced Ethereum, which is displaying a noticeable bearish tendency.
Ethereum’s Descent into Bearish Terrain
The worldwide decline in cryptocurrencies has carved a significant dent in Ethereum’s market trajectory. Analyzing the daily charts reveals Ethereum's downward migration from a formidable resistance level of $3,009.93 to a fortified support threshold at $2,192. Within the past day, Ethereum has traversed a volatile price range of $817.93, marking a noticeable decline of 2.54%
In the weekly charts, Ethereum shows consistent bearish trends and a market decline. The initial weekly price movement was bullish but the market volatility caused a sharp decline, which resulted in an overturn. The weekly price difference for Ethereum is $468.73, indicating a 10.59% decline that emphasizes the market's decreasing momentum. The data presented by CoinMarketCap demonstrates the ongoing pressure on Ethereum's performance.
Source : coinmarket cap
Technical Indicators and Market Volatility
From a trading perspective, speculation suggests that Ethereum's market is highly volatile. This is due to the clear triangle market flow, which indicates a high likelihood of both price rises and declines. The resistance and support levels present a price gap of $4,034.3, highlighting intense market volatility.
The bearish trend is further reinforced by the Moving Average Convergence Divergence (MACD), which is indicating a downward movement. With negative momentum, the MACD line is at -85.6 and the signal line is at -47.8. As the histogram widens, the red bars support the declining trend.
Furthermore, the signal line is at 44.56 and the relative strength index (RSI) line is at 32.70, indicating a move towards the oversold region. This movement suggests that Ethereum may experience a reversal if the market approaches the oversold region.
Source: trading view
Impact of ETF Launch and Market Dynamics
From a fundamental perspective, the decline in Ethereum can be attributed to a "sell-the-news" response that followed the introduction of Ethereum spot ETFs. This reaction erased nearly two weeks of gains, as major outflows from Grayscale's Ethereum Trust and other ETFs were observed. Investors showed a shift towards lower-fee alternatives, contributing to the decline.
Initially, there was optimism with the launch of Ethereum spot ETFs but the price action has been negative. The absence of consistent buying interest following the ETF launch has made Ethereum vulnerable to selling pressure. This vulnerability has resulted in a notable decline, highlighting the challenges facing Ethereum in the current market.
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The post Ethereum (ETH) Drops Amid Market Downturn appeared first on Crypto News Land.
