Ethereum, a leading altcoin in terms of market capitalization, faces a significant downturn as the new year begins with notable losses.
Current Market Situation
In the past 24 hours, Ethereum has depreciated by 3.5%, now valued at $2,620. Increased selling pressure has nudged the price closer to crucial support levels, raising concerns about further declines.
Technical Indicator Analysis
Ethereum's trading range over the last fortnight has been between $2,565 and $2,800. However, the recent drop in price is alarming as it nears the lower boundary of this range. If Ethereum fails to sustain prices above $2,560, increased selling activity could potentially push the price down to as much as $2,120.
Current technical analysis shows that Ethereum is trading below the 200-day Exponential Moving Average (EMA), indicating a prevailing bearish sentiment.
Forecasts and Expectations
Recent data presents a mixed picture for Ethereum traders. In the last 24 hours, $68 million worth of ETH has left exchanges, hinting at long-term buying interest. Despite this, overall market sentiment remains pessimistic. In the futures market, short positions at the $2,650 level total $121 million, indicating a stronger bearish outlook.
The current volatility in Ethereum's price has captured widespread attention, leaving the market's direction in limbo. The next few days will be critical as traders observe whether the $2,560 support level can withstand the pressure.
Ethereum is in the spotlight among traders due to recent price fluctuations. The future of its pricing will depend on its ability to maintain key support levels.
