Ethereum Slumps: Is The ETH Uptrend Officially Over?
Ethereum is under immense selling pressure and technically within a bear breakout formation, looking at the ETH/USD price action
Ethereum is weak at spot rates, looking at the performance in the daily chart. Even though bulls appear to be in charge from the top-down preview, cracks are beginning to short. In the short term, the coin has found resistance at around $3,700. On the lower end, $3,200 is proving to be a strong support zone.Â
When writing, bears are in charge. Ethereum is down 3% in the past day and 8% in the last trading week. As ETH prices drop, average trading volume in the past day is up 14% to $21 billion; an indicator of possible outflow. This also shows as its market cap is also down 3% to over $396 billion.
Ethereum traders are watching the following news event:
- The success of spot Bitcoin ETFs and their impact on prices is evident. Though inflow is slowing down, they still command billions in total value locked. Analysts say a similar product for Ethereum will be a game-changer. There are uncertainties, especially with the United States SEC rumored to be concerned that ETH is a security.
- Besides DeFi, re-staking is an emerging market for Ethereum. Experts now say this market could be a risk because of transparency issues. This, in turn, may present additional risks as providers seek to receive maximum rewards, introducing weakness.
Ethereum Price Analysis
ETH/USD is under pressure when writing, looking at the candlestick arrangement in the daily chart.
Even though bulls are optimistic, sellers have been rampant, looking at events in the last 24 hours.
Ethereum is currently in a bear breakout formation, unable to shake the losses of mid-March 2024.
The immediate resistance level is at $3,700.
Conversely, support is at $3,200.
Since sellers didn’t confirm the close above the middle BB, and the losses of April 2 were pumped by high trading volume, traders can search for shorts.
The immediate target in that case will be the March 20 lows at around $3,200.
Any breakout above $3,700 invalidates this bearish outlook.
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