Ethereum Trades Below $3,000 Support, Why Is ETH Falling Since November?
29 April 2022 - 12:00PM
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Ethereum has been on quite the journey, from splitting to creating
its market presence within a few years. And now, they are looking
at saving electricity and other concerns put forth by analysts with
their latest validation protocol. The cryptocurrency supports
several blockchain networks through its layers-2 services and
validations. With all these facts combined together, ETH
could very well dethrone Bitcoin as the number 1 largest
cryptocurrency network. Related Reading | TA: Ethereum Faces Key
Challenge, Why Fresh Decline Still Possible Surprisingly, after all
these achievements, one must wonder why Ethereum has been falling
since November 2021 after hitting a new high. The reason is that
the price is based on speculation about a protocol that will be
launched in the future. Unfortunately, the actual date for the
protocol has not been announced yet, so people are selling their
ETH in anticipation of the lower price. With its current market
capitalization, ETH is 10 times larger than Solana and close to 45%
of BTC’s value. According to technical insights, there are strong
supply and demand zones in the market because people want to buy
things for less. FOMO (fear of missing out) has been a major
driving force behind cryptocurrency prices. Ethereum Price Analysis
ETH’s price trend has repeatedly beaten expectations, but because
it is currently trading below the 200-day moving average (DMA)
curve, there is a negative sentiment in the short term. With the
crypto market still uncertain, buyers have made various attempts to
breach Ethereum’s $3,600 level. But the 200-day moving average is
slowly dropping. So if Ethereum surpasses this average, there could
be a significant price movement to new high levels. ETH is in high
demand at $2,400 levels, and there is a good chance that demand
will increase even more in the coming days. The only resistance
stopping it from going even higher is $3,200 to $3,600, preventing
further growth. Since April 2022, the candlestick pattern when ETH
200 DMA failed to cross-resistance has a profit booking in free
fall, stability, and more profitability bookings. On April 26,
2022, the crypto market experienced a 6% collapse. This seems to be
due to concerns about the influence of Elon Musk on the crypto
market. Related Reading | Bitcoin Trades Above $40K Once
Again, Will This Time Be Different? The ETH price decreased by 22%
in April. The buying strength indicated by the RSI indicator has
reduced by 66%. For the last six months, transaction volumes have
remained the same, with spikes but average out at similar levels.
ETH has a few milestone prices to surpass for the short term.
However, before investing in Ethereum, traders should read more
about the ETH’s future price momentum and explore market
sentiments. The price trend for ETH has been strong for most of
this year, but declining demand seems to be weakening.
Unfortunately, this decline cannot be identified by looking at its
historical data. So one must assess that prices above $4,000 will
lead Ethereum upward while values below $2,500 drag them down
further. Featured image from Pixabay, chart from
Tradingview.com
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