š Ethereum (ETH) Sees a 5% Daily Decline: Is it a Temporary Setback or Cause for Concern?
The crypto market, including major assets like BTC and ETH, is facing a challenging day on December 18. This downturn is attributed to the recent decision by the U.S. SEC on digital money regulations, sparking fear and negative sentiments among investors.
ETH, in particular, has experienced a notable dip of almost 4% in a single day, continuing a downward trend for the past seven days, resulting in a loss exceeding 6% of its value.
š¹ Market Dynamics:
Despite the recent slump, ETH still maintains a positive monthly growth of 10%, trading above $2,130 with a substantial volume of $9.5 billion, reflecting sustained market activity and interest.
š Price Action and Analysis:
Since the beginning of 2023, Ethereum has staged an impressive recovery, reaching $2,400 recently, although still below its all-time high of $4,800 in November 2021. Analysts, including those at JP Morgan, anticipate potential significant growth for ETH in 2024, surpassing Bitcoin.
š Technical Analysis:
Recent price action reveals a deviation from the upward channel since October 1, with ETH slipping below the crucial support level of $2,158. However, the presence of the 50-day and 200-day SMA above the market signals a potential bullish trend. Nevertheless, the MACD indicator suggests a negative momentum, cautioning investors about a possible further downturn.
š Whale Movements Impacting ETH:
Recent activities of Ethereum whales, particularly a notable selling spree by one whale, have raised concerns. The sale of 18,865 ETH for 42 million DAI, coupled with another whale depositing 5,000 ETH worth $11.3 million on Coinbase, adds uncertainty to ETH's short-term trajectory. Analysts speculate that continued whale activity could influence ETH prices, either pushing them down or stabilizing them.
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