Ethereum’s price has dipped below $3,400 as Bitcoin falls under $96,000. The cryptocurrency has experienced a 12.44% decrease in the past week, raising concerns about its support levels. Technical indicators suggest continued bearish momentum, while significant outflows from ETH ETFs and whale activity add to market uncertainty. The critical support level to monitor is at $3,035, with the potential for further declines if market conditions do not improve.

The price of Ethereum (ETH) has significantly decreased, now resting below $3,400 amidst a broader downturn in the cryptocurrency market. Following Bitcoin’s plunge below the $96,000 threshold, Ethereum has experienced a decline of approximately 12.44% over the past week, breaking previous support levels. Analysts question whether Ethereum can maintain the $3,400 support or if it will breach this level, leading to a potential retest of $3,000.

Technical analysis indicates that the prevailing market trend is bearish, highlighted by three consecutive bearish candles on the daily chart and the price dipping below critical moving averages. The recent bearish momentum intensified after Ethereum was unable to sustain its position above $4,100, validating a downtrend as the currency nears its Fibonacci retracement levels. Additionally, the recent outflow from Ethereum ETFs, combined with increasing whale activity—where substantial amounts of ETH were deposited on exchanges—indicates an acceleration of selling pressure.

Despite some bullish moves such as significant purchases of ETH tokens by investors, the overall sentiment remains cautious. The latest market dynamics suggest dwindling institutional support and reduced retail demand, contributing to the bearish outlook for Ethereum. The critical support level to watch is the 200 EMA at $3,035, with technical indicators suggesting the possibility of further declines unless a market recovery occurs.

The cryptocurrency market has been characterized by volatility and rapid price fluctuations, significantly impacting major assets such as Ethereum and Bitcoin. Price movements in these digital currencies are often influenced by market sentiment, institutional investments, and trading activity by large holders known as whales. The current price action for Ethereum represents a broader trend of correction following recent peaks, raising questions about support levels and potential price recoveries. As technical analysis employs tools like Fibonacci retracement levels, investors closely monitor these metrics to gauge future price movements and assess opportunities in fluctuating markets.

In summary, Ethereum’s recent price dip below $3,400 amidst increasing selling pressure marks a trend of bearish sentiment within the cryptocurrency market. Analysts are closely examining support levels, particularly the 200 EMA at $3,035, which may provide critical insight into future price action. The decline is compounded by significant outflows from Ethereum ETFs and whale movements, reflecting a more cautious approach from investors. A potential rebound towards the $3,530 Fibonacci level is contingent on broader market recovery.

Original Source: thecryptobasic.com

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