Ethereum (ETH), the prominent altcoin in terms of market cap, is grappling with a significant downturn as the new year commences with marked losses. In the past 24 hours, ETH has seen a depreciation of 3.5%, now valued at $2,620. Increased selling pressure has nudged the price closer to vital support thresholds, prompting concerns about further declines in value.
What Does the Current Trend Indicate?
Ethereum’s trading range over the last fortnight has been between $2,565 and $2,800. However, the recent price drop is alarming as it nears the lower limit of this range. If ETH fails to sustain prices above $2,560, a surge in selling activity could push the price down by as much as 15%, potentially reaching $2,120.
What Are the Technical Indicators Saying?
Current technical analysis shows that ETH is trading under the 200-day Exponential Moving Average (EMA), indicating that bearish sentiment prevails. This critical point plays a significant role in determining Ethereum’s market trajectory, drawing investor scrutiny.
Recent data presents a mixed picture for ETH traders. Key points include:
- In the last 24 hours, $68 million worth of ETH has left exchanges, hinting at long-term buying interest.
- Despite this, the overall market sentiment remains pessimistic.
- In the futures market, short positions at the $2,650 level total $121 million, indicating a stronger bearish outlook.
The current volatility in Ethereum’s price has captured widespread attention, leaving the market’s direction in limbo. The next few days will be critical as traders observe whether the $2,560 support level can withstand the pressure.
