Key Points
- Ethereum’s price has dropped by over 4% in the past 24 hours, causing concern among holders.
- Increased selling pressure and a bearish trend could lead to further downward movement.
Ethereum (ETH) has seen a significant drop in value over the past day, erasing a week’s worth of gains.
The cryptocurrency has been facing substantial selling pressure, which could potentially push its price further down if it doesn’t consolidate at key levels.
Ethereum’s Downward Trend
The daily chart reflects Ethereum’s downward trend, with a 4.21% drop at the start of the week, bringing the price to approximately $2,316.
At the time of writing, Ethereum is trading at roughly $2,300, marking a less than 1% decline.
If this trend persists, Ethereum may test the next support level at $2,224, a level it has previously bounced back from.
If the downward pressure continues, the next crucial support is around $2,168, a critical zone to monitor.
Furthermore, Ethereum’s Relative Strength Index (RSI) indicates a bearish trend, suggesting a potential weakness in buying momentum.
Increasing Sell Pressure
Ethereum’s exchange netflow over the past five days shows a consistent pattern of positive netflows, starting with an inflow of over 105,000 ETH on 12th September.
This trend suggests that more Ethereum is being sent to exchanges, possibly for liquidation or sale, contributing to the cryptocurrency’s inability to sustain its recent price rally.
Moreover, the last trading session saw a decline in trade volume to around $7 billion, indicating reduced trading activity.
Currently, the trade volume has surged to over $14 billion, doubling from the previous session. However, it is still unclear whether this increase is driven by buyers or sellers.
According to IntoTheBlock data, over 1.7 million addresses hold Ethereum around the current price level, collectively holding nearly 53 million ETH.
These holders are currently at a break-even point, neither making a profit nor suffering a loss.
If Ethereum’s price falls below this key level, these holders may panic sell to avoid losses, potentially leading to a significant price decline.
However, if Ethereum can maintain its current price range, it could potentially avert further declines.
