Ethereum's price has been dropping consistently, unable to surpass the $4000 level, with potential for further decline in the coming weeks.
Technical Analysis: Daily Chart
On the daily chart, the asset has been trending lower since it failed to break above the $4000 resistance zone. It has since broken below several support levels, including the $3000 line and the 200-day moving average around the $2900 mark. Yesterday, the altcoin rebounded from the $2400 support zone, but it’s expected to drop back towards it as the RSI shows clear bearish momentum. Losing the $2400 level could lead to a drop to the $2000 mark and beyond.
Technical Analysis: 4-Hour Chart
Looking at the 4-hour chart, the price has been consolidating for almost 3 weeks after the massive drop from the $3500 area. However, the asset has once again begun to drop lower and could still experience a deeper decline in the coming days. Yet, the $2400 level is still likely to hold the market and initiate a pullback toward the $2800 level if it remains intact.
Sentiment Analysis: Long Liquidations
This chart presents Ethereum long liquidations—one of the important metrics to monitor when the price experiences a significant drop. It gauges the number of long futures positions liquidated each day. The recent crash saw the biggest long liquidation cascade in the past couple of years. Continued liquidations could lead to more downside, as closing these positions adds to selling pressure. However, given the recent scale of liquidations, the futures market is cooling down, making sustainable price action more likely in the short term.
Ethereum faces bearish pressure and could decline further if current support levels fail. Despite risks, the market is stabilizing after significant liquidations.
