The cryptocurrency market has entered a new phase with increasing volatility. In this context, Ethereum demonstrates different behavior from the overall decline, raising questions about its near-term resilience.
Factors Influencing Ethereum’s Price
One of the primary factors contributing to Ethereum’s rise is the $49.5 million hack of Infini, a crypto-focused neobank. The stolen funds were converted to DAI and used to purchase Ethereum, creating significant buying pressure. However, large sell-offs by Binance negatively impacted its price, leading to a downturn.
Key Levels for Ethereum’s Price
Ethereum is trying to hold onto a support zone that has remained strong for the past five months. Currently, it struggles to hold the $2,700 support level, with apparent diminishing buying pressure. Technical indicators, such as the Chaikin Money Flow index and Directional Movement Index, confirm the current state of the market, indicating potential further price decline below $2,650.
Ethereum continues to remain in focus amid the general market volatility. Despite current challenges, the market watches the asset's efforts to maintain stability at key levels.
