Technical Analysis
Ethereum’s price is currently testing a key level after being rejected from the $2,700 mark and breaking down the $2,400 level. If it surpasses $2.4K, a rally towards $2,700 and higher could be expected. However, a rejection from this level may result in a drop towards the 200-day moving average at around $2,000.
The 4-Hour Chart
On the 4-hour chart, Ethereum’s price is gradually approaching the $2,400 level again after a previous rejection. The Relative Strength Index indicates that momentum favors buyers, making a breakout above the $2,400 resistance zone more likely.
Sentiment Analysis
Evaluating market sentiment can provide insights into future price action. The Ethereum Coinbase premium index shows negative values recently, indicating that American investors on Coinbase are selling their ETH holdings. This bearish sentiment from influential investors with significant resources could contribute to further price declines if demand does not meet selling pressure.
Hot Take: Will Ethereum Recover or Drop Further?
Ethereum’s price is currently at a critical juncture as it tests key levels. While a rally towards $2,700 is possible if it surpasses $2.4K, a rejection could lead to a drop towards the 200-day moving average at around $2,000. Additionally, negative sentiment among American investors on Coinbase suggests selling pressure that may contribute to further price declines. It remains to be seen whether sufficient demand will emerge to counteract this selling pressure and drive Ethereum’s recovery.
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