Ethereum, the largest altcoin by market capitalization, continues to decline, starting the year with losses. Over the last 24 hours, its value dropped by 3.5%, reaching $2,620. As selling pressure rises, the price approaches critical support levels.
The Ongoing Decline in Ethereum's Price
For the past two weeks, Ethereum has fluctuated between $2,565 and $2,800. However, this latest drop has brought the price closer to the lower boundary of this consolidation zone. If ETH breaks below the $2,560 level, selling pressure may increase, potentially driving the price down by 15% to $2,120.
Actions of ETH Traders
Currently, there are mixed signals in the ETH market. According to Coinglass data, $68 million worth of ETH exited exchanges in the last 24 hours, suggesting some investors are looking at long-term acquisitions. However, overall market sentiment remains bearish.
Key Levels and Future Prospects
Bears seem to dominate the futures market. At the $2,650 level, there are $121 million in short positions, while at $2,605, $90 million in long positions exist. The higher short positions indicate that ETH’s downward movement may continue. Current volatility in ETH prices captures the attention of investors, and whether the $2,560 support level holds will be critical for the future price of ETH.
The current volatility in ETH prices captures while investors' attention is diverted. The critical support level of $2,560 will mean a lot for the future price of ETH.
