Ethereum's price has fallen below the critical $2,000 mark amid U.S. governmental decisions and ongoing market pressure in the crypto sphere.
Ethereum's Price Decline
On Monday, Ethereum's price dropped to $1,999, marking a 5.5% decrease from the previous day. This decline complements a broader trend, with Ethereum losing about 20% of its value over the past week. The cause is linked to former U.S. President Donald Trump's decision to establish a strategic bitcoin reserve, amplifying pressure on the crypto market.
Technical Analysis of Ethereum
From a technical standpoint, Ethereum continues to face resistance at critical levels for over a year. Analyst Tony "The Bull" Severino notes that Ethereum has never crossed above the quarterly Parabolic SAR indicator, demonstrating strong resistance. Similarly, the quarterly SuperTrend resistance point acts as a barrier. The previous support at $2,100 has now become a key resistance level.
Market Recovery Prospects
For Ethereum to recover, it needs to break above the $2,125 mark to establish a new upward momentum. The potential rise to $2,359 depends on surpassing current resistance levels. At present, the activity of large investors who continue to buy might signal a phase of accumulation before potential growth.
The current market situation demands careful analysis from investors. Ongoing pressure and technical indicators point to possible further decline, while large player activity hints at potential upswing.
