The value of Ethereum has dropped to $2,420, marking a 4% decrease in a week and causing its market capitalization to fall below $300 billion. A technical analysis of the 4-hour chart indicates bearish signals, with a potential drop to $2,150. On-chain data shows that there is crucial support at $2,300, where 2.77 million addresses hold 52.65 million ETH.
Ethereum (ETH) is facing a period of uncertainty as its price experiences a significant decline, raising concerns about the sustainability of key support levels. Currently trading at $2,400, ETH has seen a 2% drop in the past 24 hours and a more substantial 4% decrease over the past week.
This downward movement has resulted in Ethereum’s market capitalization dropping below the $300 billion threshold, settling at $291 billion with a 24-hour trading volume of $16.11 trillion.
A technical analysis of Ethereum’s daily chart has revealed a larger falling channel pattern, indicating an ongoing downtrend. The bullish momentum within this bearish channel is struggling to gain traction, facing significant resistance at the 50-day Exponential Moving Average (EMA).
Since reaching a 14-day high of $2,729, ETH has retraced 11.52%, though there is still hope as long as the price holds above the crucial $2,350 support level.
Zooming in to the 4-hour timeframe, the likelihood of a breakdown rally increases. The Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover, while the 50, 100, and 200 EMAs have aligned in a bearish formation.
Technical signals collectively point towards a potential sell opportunity, with key support levels at $2,150, $2,000, and $1,900 should a bearish breakdown materialize.
On-chain metrics provide additional context to Ethereum’s market dynamics. The Global In and Out of Money Indicator from IntoTheBlock reveals that 77.54% of Ethereum’s current supply, approximately 105.62 million ETH tokens valued at $255.43 billion, is “in the money.” The “At the Money” range spans from $2,412 to $2,511, encompassing 4.85% of the current supply.
Analyst Ali Martinez highlights the significance of the $2,300 level, where nearly 2.77 million addresses hold 52.65 million ETH tokens. This concentration of holdings creates a crucial on-chain support level, potentially influencing Ethereum’s price action in the near term.
