In recent days, Ethereum has faced selling pressure and is struggling to break the $3,600 mark, while optimism remains in the market.
Current Market Situation of Ethereum
As of now, Ethereum is trading just above $3,617, which is down 1.4% in the last 24 hours and 4.4% over the week. This decline followed a recent 50% rise which stalled before the $4,000 mark.
Reasons for Price Pressure
Research conducted by CryptoQuant's Maartum shows that the supply of Ethereum exceeds demand, leading to negative market dynamics. The Net Taker Volume dropped to -$418.8 million in a single day, indicating sellers are leaving the market faster than new buyers can return. The actions of large investment funds like BlackRock and Fidelity selling their assets also contributed to this trend.
Outlook for Ethereum in 2024
Despite the selling pressure, Polymarket shows confidence that Ethereum may set a new price record by the end of the year, with around 54% of traders betting on a new all-time high. Increasing interest from institutional investors also fuels optimism, as approximately 17 public companies hold Ethereum in their portfolios worth around $6 billion.
Thus, despite current pressures, many traders and institutional investors remain hopeful for further price growth of Ethereum. It is crucial to monitor technical indicators that may signal a trend change.
