Bears Eye $2K as ETH loses positive momentum

Ethereum’s recent failure to recover the average threshold of the multi-month descending channel of $2.6k has led to a major rejection, indicating a possible continuation of the downtrend towards the support level of 2 .1 thousand dollars in the medium term.

By Shayan

The daily chart

Ethereum price movement on the daily chart reflects a bullish trap. After briefly breaking through the $2.6K resistance, the price quickly lost momentum due to intense selling pressure, resulting in a 15% drop.

This rejection highlights the dominance of the sellers in the market, as ETH failed to recover this critical threshold. Adding to the bearish sentiment, a “Death Cross” has occurred, where the 100-day moving average crossed below the 200-day moving average, a historically bearish signal.

The market is now poised for another pullback towards the $2.1K support area, which aligns with a major swing ahead. Ethereum is expected to enter a downward consolidation phase, with a gradual downtrend towards this key medium-term level.

Source: TradingView The 4-hour chart

On the 4-hour chart, ETH’s struggle to hold momentum near Fibonacci levels 0.5 ($2.6K) – 0.618 ($2.8K) led to a sharp decline towards the lower bound from the ascending flag of 2.3 thousand dollars. Ethereum is currently hovering around this support level, with low volatility and sideways consolidation, indicating market indecision.

Although the buyers or sellers are not in explicit control at this point, the bearish momentum suggests that they are trying to push the price below the lower limit of the flag.

If Ethereum breaks below this level, it could trigger a sustained downtrend, targeting the $2,000 psychological support. However, the $2.1 thousand threshold remains a crucial defense for buyers to avoid further decline.

Source: TradingView

By Shayan

The chart provided highlights a stark contrast between the performance of Bitcoin and Ethereum ETFs over the 79 days since launch. The divergence in investor behavior suggests different levels of demand and confidence between these two cryptocurrencies, with Bitcoin showing substantial inflows and Ethereum struggling to attract interest.

As of day 79, Bitcoin ETFs have accumulated $29.1 billion in inflows, with total assets under management increasing from $29.2 billion at the start to a high of $58.3 billion before stabilizing around 59.7 billion dollars. This growth reflects a steady and steady demand for Bitcoin from investors.

In contrast, Ethereum ETFs have seen a net outflow of $4.1 billion over the same period, with AUM decreasing from $10.7 billion to $6.6 billion.

The continued downward trend reflects weak demand, indicating that Ethereum, a dominant force in the broader crypto ecosystem, has yet to capture the same level of interest from ETF investors. This trend suggests that while both assets are central to the cryptocurrency market, Bitcoin’s stability and institutional adoption currently make it the most attractive choice among ETF products. At the same time, Ethereum may need to overcome short-term market concerns to recover.

Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.