The prolonged weakening of Ethereum’s price has drawn significant attention from market observers. If the price continues to lose critical support levels, it may decline to around $1,060.
Resistance Levels Continue to Reject
Technical analyst Mags points out that Ethereum has failed to surpass the $4,000 level three times. This inability to breach the resistance level has led to a downward momentum in the price. Ethereum has fallen below the medium range, losing significant support levels. The breaking of the trend support line has further strengthened bearish expectations. Ethereum’s performance against Bitcoin is also deteriorating. The ETH/BTC pair continues to trend downward, with the daily RSI value dropping below 30, indicating an oversold condition. The current position of this indicator suggests that the market is struggling to recover for Ethereum.
Increased Withdrawals Amid Declining Activity
There is a notable increase in withdrawals from U.S.-based Ethereum funds. Recent data shows a 9.8% decrease in spot Ether funds. In contrast, the drop in Bitcoin-based funds has been more limited. The hesitant stance of institutional investors towards Ethereum is putting additional pressure on the market. A clear decline is also observed in Ethereum’s network activity. As the mainnet transaction volume decreases, median gas fees have also shown a downturn. This reduction in on-chain data indicates a waning interest in the Ethereum network.
Analysts' Outlook and Warnings
Technical analyst CarpeNoctom notes that a positive divergence in Ethereum’s weekly charts has yet to be confirmed. This situation suggests that a price bottom has not yet been established and that the downward trend may continue. Analysts indicate that Ethereum may struggle to create support levels and could face further selling pressure. The ongoing weakening of Ethereum’s price is causing market participants to act cautiously. Technical analysis data makes it difficult to anticipate an upward movement in the near term.
Ethereum continues to face challenges as market participants remain cautious. Technical data suggest it is difficult to expect a rise soon.
