Following Ethereum‘s recent software update, its digital currency, ETH, experienced a price correction of over 10%, unable to maintain its position above the $4,000 mark. This decline in value occurred despite a positive trend seen in Bitcoin‘s recovery over the past weekend. Ethereum’s price, however, has remained subdued under bearish market influences.
Ethereum’s Market Sentiment Holds Despite Price Fall
Ethereum’s value plunged significantly, dropping more than 10% from a peak of $4,000. Still, the majority of Ethereum holders, constituting 89% of the network, are profiting from their investments. This points to a potential stability within the Ethereum community despite the fluctuating market. Analysis from IntoTheBlock, a blockchain intelligence company, indicates strong potential support levels, particularly around $3,700. This level is where the majority of trading activity has concentrated, with nearly a million addresses holding a substantial amount of ETH.
Technical Analysis: Ethereum’s Price Movements Monitored
Market participants are keenly observing Ethereum’s price patterns, keeping an eye on pivotal support and resistance levels. Currently, the $4,000 mark is considered a psychological threshold. Ethereum’s price trend suggests it trades under both $3,700 and the 100-hour simple moving average, reflecting a downward pressure.
Forecasting Ethereum’s Price Potential
Market experts point out that Ethereum faces immediate resistance at around $3,650, with a significant decline trendline forming. Overcoming hurdles near the $3,660 mark is critical for ETH. The next resistance thresholds are projected around $3,750 and $3,830, which if surpassed, could lead to a substantial price rally. Conversely, if Ethereum fails to break past the $3,650 resistance, it may face a new downturn with support levels anticipated near $3,520 and potentially lower if the decline continues.
In the event of a price surge, Ethereum has a chance to reach towards $3,925 and may attempt to revisit the crucial $4,000 resistance level. If the momentum persists, it could even hit the $4,080 mark. However, sustained resistance could lead to further declines to support zones of $3,420 and, in the case of increased selling pressure, to $3,250.