- Selling pressure on Ethereum increased over the past week
- Most market indicators appeared bearish on ETH charts
Ethereum [ETH] The price managed to exceed $3.2 thousand last week. However, soon after, the altcoin turned bearish as ETH failed to maintain its position on the charts. Given how everything has played out, if the worst-case scenario here is considered, ETH could fall to its $2.7k support level.
Redder for Ethereum
According CoinMarketCap, the price of ETH appreciated 2% last week, allowing it to surpass $3.2 thousand on April 24. However, the bullish trend did not last long as its price fell in the last 24 hours. At the time of writing, ETH was trading at $3,118.13 with a market capitalization of over $380 billion.
According to IntoTheBlock data, 79% of Ethereum investors are still making profits. The drop in ETH price also negatively affected its social volume. Furthermore, after a peak on April 25, its weighted sentiment fell on the charts. This alluded to the bearish sentiment around ETH being on the higher side.
However, things could get worse as if ETH sees further price corrections, its value could fall to the $2.7k support level in the coming days, according to a recent report. https://twitter.com/CryptoTony__/status/1783790370603798773 from Crypto Tony, a popular crypto analyst. The chance of ETH reaching that support level would increase if it fails to break above $3.6k.
Therefore, AMBCrypto took a look at Santiment data to see if the metrics looked bearish.
We found that the selling pressure on the token has been increasing. Proof of this was the increase in its foreign exchange inflows last week. The fact that selling pressure was high is further demonstrated by the increasing supply of ETH on exchanges.
However, on the contrary, whales continue to rely on ETH as the supply in the hands of major addresses increased.
Ethereum Immediate Support Levels
AMBCrypto then reviewed the daily chart of ETH to determine whether a sustained downtrend is inevitable or not. We found that the Money Flow Index (MFI) rose – a signal predicting a price rally.
However, the rest of the indicators seemed bearish. For example, both ETH’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) headed south, meaning the chances of a new price drop were high.
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Finally, AMBCrypto analysis of Hyblock Capital data revealed that ETH has a strong support level near $3.1k if a price correction occurs.
A drop below that level could see ETH fall to $2.8K before reaching its tested support level of $2.7K in the coming days or weeks.
Next: Examining BAYC’s latest rally from its 32-month low
This is an automatic translation of our English version.
