Ethereum is in a downward trend for more than four weeks. It has formed what looks like a rounded bearish top, which suggests that it could be in danger of experiencing further losses over the next few weeks.
You can read more about it here:
- Ethereum is now 41% lower than its previous high.
- Weak demand and macroeconomic indicators that bearishly predict a weak market have kept ETH prices under pressure.
- The price of a multi-month top pattern with rounded edges could be further affected.
Crypto.news reports that Ethereum (ETHSince October 28, ( has fallen by 41% in the past year. At press time the top altcoin of the crypto market was trading at $2,926. This is a slight recovery and 2% increase over the last day.
The price of Ethereum fell amid a wider market correction, in which Bitcoin was (BTC) fell significantly below the $100k support level amid macroeconomic concerns, including a hawkish statement from U.S. Federal Reserve Chair Jerome Powell regarding further rate cuts. It scared traders who fled from risky investments.
The fear and Greed IndexThe traders who use this tool to gauge the market’s sentiment have reached a consensus. “Extreme Fear” By mid-November, the price was at its current level. A wave of liquidity was triggered by this widespread concern, creating additional pressure to sell major cryptocurrencies including Ethereum.
As demand for the spot ETFs for this asset has decreased, so too did its market capitalization. Data SoSoValue reports that since the middle of October, nine U.S. Ether ETFs saw a net outflow of over $2.1 billion.
BitMine has been a leader in the development of cryptocurrency. Ethereum accumulation Even with an oversized purchase, it appears that the overall investor sentiment remains weak. Ethereum may continue to slip lower into support zones, if there is continued selling pressure.
The daily chart shows that the price decline of Ethereum, which began early in October, has developed into a multimonth rounded-top pattern. This is a sign for a prolonged bearish trend.
For instance, Solana (SOLThe price of, which had been trading at $247.56 in September, plummeted to $124. formed such a pattern On its charts.
The altcoin price at the time of publication was testing to break out from the rounded-top pattern. It had turned the level $2,750 into support after previously acting as a major resistance.
The inverse cup and handle setup could eventually result, which is a more severe bearish continuation structure that can frighten short-term traders. It could lead to a cup-and-handle setup that is regarded by many as being a bearish continuation pattern with heightened severity. This can be frightening for short term traders.
Traders should be watching $2,230 as the next important support level. This level was a good demand zone for many years, and provided a firm base in multiple consolidation periods. As of press time, the support level is about 24% lower than current prices.
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Source: crypto.news
