The cryptocurrency market has been on a rollercoaster ride, especially with Ethereum’s price fluctuations dominating the headlines. Ethereum recently managed to break through the crucial resistance level of $3,200, currently trading at $3,245. However, investors are now questioning whether Ethereum will find support at $2,700 or if it will rally back above $3,500.
Santiment Data Indicates Selling Pressure on Ethereum
Ethereum Price Trend Raises Concerns The recent downtrend in Ethereum’s price, the leading altcoin in the crypto world, has been attributed to various factors. Despite a brief 2% increase in recent days, this uptrend failed to sustain itself. The subsequent decline followed by a minor recovery within the past 24 hours has left investors puzzled.
Santiment Data Indicates Selling Pressure on Ethereum Analyzing Santiment data reveals an increasing selling pressure on Ethereum. The rise in exchanges’ inflows last week suggests a strengthening of this selling pressure. However, it’s noteworthy that whales continue to have confidence in Ethereum, with an increase in supply held by top addresses.
According to Santiment’s findings, although most investors remain profitable, the social volume has been negatively affected by Ethereum’s price movement. Additionally, a decrease in weighted sentiment on the charts indicates a potential further price retreat. Analysts like Crypto Tony have highlighted the $2,700 support level as crucial. A breach of this level could exacerbate Ethereum’s decline and pose challenges in reaching the $3,600 resistance level.
A closer look at the daily chart shows a northward movement in the Money Flow Index, yet other indicators signal a downward trend. Both the Relative Strength Index and Chaikin Money Flow point to a high likelihood of price decline.
As Ethereum hovers around the critical $2,700 support level, its future trajectory remains uncertain. A drop below this level could see Ethereum plummeting further, possibly reaching $2,500. However, it’s essential to remember the inherent uncertainties in the market. While Ethereum occasionally deviates from Bitcoin’s movements, a significant decline in BTC could significantly impact Ethereum, the forefront altcoin leader.