Ethereum Price Remains Bearish: ETH Price to Test $2000?

• 1 At the time of writing, Ethereum Price traded at $3,059, the volatile price action of the cryptocurrency pretty much aligned with the derivatives data.
• 2 Last two months, ETH volumes stayed lower, with ongoing development activity declining from last week.

Ethereum, the second largest crypto giant by market cap, has nabbed attention across the worldwide crypto realm, as it confronts turbulence among the broader crypto market’s instability. 

Cracking down nearly 4.62% in the past 24 hours, the Ethereum price has raised intense concerns among investors which underlines bearish sentiments for the asset.

At present, it is trading at $3,059, and the volatile price action of the asset aligns with derivatives data, which suggests that market sentiment is bearish. 

Coinglass has reported a 4.95% decrease in the ETH token’s open interest, and derivatives volume has also plummeted by 51.55%. This data indicates a strong bearish sentiment among investors and traders. 

The bearish wave has raised concerns about a potential price correction for Ethereum in the future. Furthermore, the profit-taking behavior during the post-halving rally further reinforces this sentiment. 

Ethereum Price Action Weakening 

Looking at past price structures over the daily chart, Ethereum’s price has seen a massive upsurge, favoring the bulls. The price rose from the demand zone near $1535 by the October 2023 support level and rallied up to $4100 by March 11th, 2024. 

However, after reaching its peak, the price fell into a wedge and started making lower lows and highs after March 12th as bulls lost their traction on the daily chart.

Ethereum Price Looks Shaky on Short-term 

In the 4-hour time frame, despite the significant decline, Ethereum still shows bearishness and falling capacity as it slides below the considerable trend in the 20-day and 50-day EMA bands. If sellers continue to surge, the drastic decline could extend even further. 

Likewise, the Ethereum asset is showing bearish momentum as MACD shows a bearish crossover, and the RSI is falling steadily at 33.29, indicating that the ETH asset is not gaining steam and can continue to drop lower. 

Therefore, both derivative factors and technical indicators influence Ethereum’s price movements. The breakdown from the rising wedge pattern on the 4-H chart highlights bearishness. 

On the downside, Ethereum has support near the $3,030 level, with additional support levels at $2,830. A breach of these support levels might lead to further downside, with the price potentially testing the lower trend line of the wedge in the near term, and even reaching $2730, and $2690 support zones.

For the upstream, Ethereum’s first major hurdle is near the $3,250 mark. Beyond that, the key resistance levels are observed at $3,288. A breakthrough above these levels could signal bullish momentum, potentially driving the price toward the $3359, and $3,681 resistance zones.

Ethereum Price And Volumes Move in Tandem

Moreover, the volume analysis shows that the Ethereum cryptocurrency has received $14.54 Billion in volume, which is 7.25% more than the previous day. The price vs Volume charts describes a deterioration in the overall volume from March 2024, along with the price decline, suggesting the continuation of the ongoing trend. 

Development Activity on Ethereum Dropping

The development and developers activity count shows the recent updates and changes occurring in the ETH crypto. Looking at the charts, it was observed that the development activity and the developer count have been rising since October 2023. But the recent week shows decline in activity from 149 to 100.

Summary

Ethereum has faced recent turbulence in the crypto market, dropping nearly 4.62% in 24 hours to $3,059. Bearish sentiment is strong, with decreasing open interest and volume suggesting a potential price correction. 

Ethereum’s price movement is influenced by derivative factors and technical indicators, with a bearish trend highlighted by a rising wedge pattern breakdown. Support levels are at $3,030, and $2,830, while key resistances are at $3,250, and $3,288. Volume analysis indicates a slight increase on an intraday basis, over in long run its volume stays lower, with ongoing development activity declining from last week.

Technical Levels

Support Levels: $3,030, and $2,830

Resistance Levels: $3,250, and $3,288

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.