The post Ethereum Struggles at $2.6k Support Amidst Increasing Seller Pressure appeared on BitcoinEthereumNews.com.

Ethereum (ETH) currently finds itself trading at a critical support zone around $2.6K. Data from Coinalyze indicates slight bullish sentiment, yet this may not suffice to trigger a significant rally in ETH. Notably, an on-chain analysis points to more consistent accumulation of ETH compared to Bitcoin (BTC), although the $2.6K zone remains a formidable resistance area. Analyzing the current market dynamics: Ethereum’s pivotal support level at $2.6K. Ethereum’s Supply-Demand Dichotomy: Battling the $2.6K Support Ethereum’s price action reveals a critical juncture as it trades around the $2.6K support level. Despite the bullish indicators observed in on-chain metrics, the resistance posed by this zone cannot be overlooked. The recent transfer of $32 million worth of Ethereum to Coinbase hints at potential sell-side pressure, which could drive prices downward if supply exceeds demand. Market Structure and OBV Trends Reviewing the ETH/USDT on a 1-day timeframe, the token exhibits a distinctly bearish market structure. The On-Balance Volume (OBV), signaling overall market momentum, has been declining steadily, setting lower highs over the past ten days. This downtrend in OBV suggests that the buying pressure necessary for a sustainable rally is currently absent. Consequently, any short-term price increases are likely to be temporary unless there is a significant shift in demand. Support and Resistance Levels: Key Indicators The in/out of the money analytics from IntoTheBlock highlight the $2540-$2617 range as a robust support zone for Ethereum. Above this support, resistance levels up to $2.9K, though smaller, still present substantial barriers. The recent price bounce above $2.6K indicates a majority of addresses that invested in August are now profitable, further affirming the importance of this support region. Funding Rate and Market Sentiment Coinalyze data shows that the negative Funding Rate is near a pivot, reflecting an increasing number of bullish speculators. This is complemented by a…

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Filed under: News - @ August 18, 2024 9:19 pm