The cryptocurrency market continues to face pressure, with Ethereum falling by 13% to $1569. The overall market cap has also decreased by more than 6%.
Technical Analysis and Forecasts
Ethereum's price has dropped below several key technical levels, potentially leading to further depreciation toward $1500 or lower. After reaching a peak of $4098 in December, Ethereum has declined over 60%, forming a triple top pattern with a neckline at $2140. The price has also broken below the 61.8% Fibonacci retracement level at $1935, which is often regarded as a significant support area.
Indicators such as the Relative Strength Index (RSI) and the Stochastic Oscillator show a decrease in current market conditions. The Average Directional Index (ADX) now sits at 30, indicating a strong bearish trend. Ethereum has also fallen below the 50-week and 100-week exponential moving averages, reinforcing negative sentiment among technical traders.
State of Liquidations and Market Sentiment
Ethereum has recorded over $367 million in liquidations within 24 hours, indicating sharp market reactions. Analysis reveals that spot ETFs have seen outflows of $49.93 million between March 31 and April 4. The largest withdrawals came from Grayscale’s Ethereum Trust, totaling $31.08 million, suggesting weaker institutional support amid recent volatility.
According to the current crypto fear and greed index reading of 27, the market shows signs of rising fear from investors. Ethereum’s on-chain activity has also declined, with fewer active addresses and a slowdown in burned fees.
Impact of Upgrades on Ethereum
While whales have been buying the dip, Ethereum’s recovery may depend on external factors such as the upcoming Pectra upgrade. If launched soon, it could help stabilize prices.
The cryptocurrency market situation remains tense, and further movements of Ethereum will largely depend on both technical factors and investor sentiments.
