As the cryptocurrency market experiences heightened volatility approaching the month-end, Bitcoin (BTC) has dipped below $96,000, while Ethereum (ETH) has managed to hover around $2,700. This disparity suggests a unique resilience in Ethereum’s performance amid overall market declines, though experts warn that this resilience could be temporary.
What Contributed to Ethereum’s Recent Price Movement?
A significant factor behind Ethereum’s recent upturn is the $49.5 million breach of the crypto-focused neobank Infini. The illicitly obtained funds were converted to DAI and subsequently used to acquire Ethereum, leading to substantial buying pressure that briefly pushed ETH to $2,840 before a wave of selling ensued.
What Are the Critical Price Levels for Ethereum?
Ethereum faces a crucial support level at $2,700, which it is currently trying to uphold. Last weekend, the asset tested the $2,772 mark but could not sustain its momentum, indicating that buying interest may be waning.
Technical analysis reveals several important insights:
- The Chaikin Money Flow (CMF) index has sharply fallen below zero, indicating a decline in market strength.
- The Directional Movement Index (DMI) lines have begun to diverge, suggesting a possible downturn.
- The most critical support zone is set at $2,650, failure to maintain this level could lead to a drop between $2,567 and $2,541.
Ethereum’s ability to navigate this period of market turbulence will be closely monitored by traders and analysts alike, particularly as the cryptocurrency landscape remains unpredictable. The coming days will be pivotal in determining whether ETH can recover or if it will succumb to the prevailing selling pressure.
