Ethereum Faces Downward Pressure as Daily RSI Signals Bearish Outlook Below $3,400
The post Ethereum Faces Downward Pressure as Daily RSI Signals Bearish Outlook Below $3,400 appeared on BitcoinEthereumNews.com.
Ethereum’s recent price struggles highlight a critical juncture as daily indicators signal potential further declines in the crypto market. Long-term holders display confidence, yet recent market dynamics indicate a bearish sentiment that may lead Ethereum to test lower price levels. As stated by market analysts, “The current price action reflects ongoing investor anxiety, particularly given the inability of Ethereum to maintain support at $3,400.” This article explores Ethereum’s bearish trends, market indicators, and long-term holder sentiment as it faces significant price challenges. Ethereum bulls falter at $3,400 once again For the second time in recent months, Ethereum has struggled to maintain its position above the significant $3,400 level, marking a pivotal point for the altcoin’s trajectory. Following an initial support phase during mid-2024, traders witnessed this level flipping to resistance, causing alarm among investors. Source: ETH/USDT on TradingView Historical data suggest that the $3.4k-$3.5k zone played a crucial defensive role earlier this year before succumbing to selling pressure. The lack of significant bullish momentum since then has resulted in a series of lower highs, compounding bearish sentiment in the market. Technical Indicators Reflect Bearish Sentiment Recent analyses reveal a concerning trend with the daily Relative Strength Index (RSI) registering below 50, reinforcing a bearish outlook. This scenario, paired with the On-Balance Volume (OBV) hovering around critical support levels, indicates diminishing buying interest and increasing seller dominance. Source: Coinglass Moreover, the recent liquidation heatmap paints a troubling picture for Ethereum. Potential targets appear to be focused below the $3,000 threshold, with significant liquidation zones identified at $2,800 and $2,700. The implications of these levels are critical for traders looking to navigate the current market landscape. Source: Coinglass Long-Term Holder Confidence in Contrast to Market Movements Despite bearish price movements, long-term holders of Ethereum seem resilient. Analysis of on-chain metrics suggests that…
Filed under: News - @ February 2, 2025 9:07 pm