According to CryptoPotato, Ethereum's price has been experiencing a downward trend after failing to break the $4,000 resistance level for the second time. The cryptocurrency has not yet recovered from this setback.
On the daily chart, Ethereum's price has been forming lower highs and lows since it was unable to surpass the $4,000 mark. The market has also fallen below the 200-day moving average, which is around the $3,100 level. Currently, the price is retesting this moving average but appears to be facing rejection, suggesting a potential drop towards the $2,700 support level in the short term.
The 4-hour chart provides a closer look at the recent price movements. The downtrend has intensified, 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.
In terms of on-chain analysis, the Ethereum Exchange Reserve metric, which tracks the amount of ETH held in exchange wallets, has shown an increase above its 30-day moving average following the recent dip below $3,000. This rise in the exchange reserve metric could indicate the beginning of a capitulation phase, as many investors' stop losses were triggered below the $3,000 level.