Over the past 24 hours, Ethereum (ETH) price fell by 3.45%, following the bearish trend across the cryptocurrency market. The Crypto Heatmap shows widespread declines, with Bitcoin (BTC), Avalanche (AVAX), and Cardano (ADA) among the losers.
Analysts said the drop was due to profit-taking after the recent market rally and macro pressures on investor sentiment.
Despite it being bearish, Ethereum is still the leading crypto in market activity with a market dominance of 12.78%. This is a pullback from the earlier November rally in which it hit a high of $3,462.
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At present, bullish trends are seen as temporary uncertainties while traders consolidate profits, while Ethereum still has strong fundamentals for the long run.
Market Heatmap Shows Broad Declines
Looking at the Crypto Heatmap, it seems that the major cryptocurrencies are under a bearish sentiment. Leading the downward trend is Bitcoin, falling 6.34% to $91,789. Profit-taking continues after rallying to near $100,000 earlier this month and falling below the $95,000 support level.
Ethereum followed the downtrend with 4.21%, while Solana (SOL) dropped by 10.42% amid rising volatility. Similarly, other altcoins such as Cardano (ADA) and Dogecoin (DOGE) also dropped by 15.08% and 12.31% respectively, to further amplify the bearish momentum on altcoins.
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ETH Price Chart Analysis: Signs of a Pullback
The daily chart of Ethereum shows a slight correction, following a strong rally from $2,586 in early November to $3,462, up 34%.
Traders are locking in profit from the sharp rally in the past contributing to this pullback. Even with the decline, Ethereum is strong above important support levels.
The 13-day MA is crossing above the 49-day MA, creating a Golden Cross formation and giving momentum to remain upward. The critical support zones at the moment are the 13-day MA of $3,237 and the 49-day MA of $2,919.
The Relative Strength Index (RSI), at 59.95, has returned from overbought zones, suggesting some consolidation ahead before another potential rally.
Support lies at immediate $3,237 and resistance at $3,462. Breaking above $3,462 could set sights on $3,600–$3,700, whereas throwing out below $2,919 could lead to more bearish momentum.
Why Ethereum’s Ecosystem Shows Bearish Trends
Furthermore, Ethereum-based tokens such as Lido Staked Ether (stETH) and Shiba Inu (SHIB) are also experiencing declines. The bearish momentum reflects investor caution following a period of rapid price increases.
Despite short-term dips, Ethereum remains fundamentally strong due to its Proof-of-Stake (PoS) mechanism and growing adoption in DeFi platforms. Nearly 29% of Ethereum’s supply is staked, reducing circulating supply and creating upward price pressure over the long term.
DeFi protocols have seen a 65% increase in Total Value Locked (TVL), further solidifying Ethereum’s role as a cornerstone of decentralized finance.
Ethereum could likely reach $8,000 by the end of the year, according to analysts, fueled by institutional interest and approval for spot Ether ETFs.
Earlier, Ether ETF had been asked to remove staking as it was causing a price difference to Bitcoin. These regulatory scrutinies of staking and external macroeconomic factors, however, could slow its ascent, leading to a mixed outlook for the near-term trajectory of Ethereum.
