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Ethereum faces critical support near $2.8K amid market uncertainty. Analyst predicts potential $6K rally within the bullish ascending channel. Ethereum (ETH) trades at $3,234, marking a 0.51% decline over the past 24 hours. Trading volumes have dropped 13% within the same period, reflecting cautious market sentiment. The cryptocurrency remains 33% below its all-time high (ATH) and has declined 18% over the past month, hitting a 20-day low of $3,158 just two days ago. ETH Price Chart, Source: Sanbase Moreover, on the weekly chart, Ethereum is consolidating within an ascending flag pattern, often seen as a precursor to a breakout. Currently, ETH is approaching the lower boundary of this channel at $2,800, a level that could act as a launchpad for a significant upward rally if it holds. Failure to maintain this support, however, may lead to further declines. Zooming into the daily chart, ETH’s $3,000 psychological level has shown resilience, with increased trading activity hinting at potential short-term stabilization.  On-Chain Metrics Paint a Complex Picture While short-term indicators point to possible recovery, long-term metrics suggest caution. Ethereum exchange outflows have surged, signaling profit-taking as investors cash out near the $3,000 mark. This trend aligns with increased exchange-held balances, which rose to 15.85 million ETH as of January 9, per CoinGlass data. Elevated exchange balances typically indicate selling pressure. Ethereum’s recent struggles coincide with rising U.S. bond yields, driven by the Federal Reserve’s hawkish stance on inflation. The 30-year bond yield reached its highest level since October 2023, creating a risk-off environment that weighed on cryptocurrencies. As Ethereum approaches the pivotal $2,800 support, its trajectory hinges on whether this level can sustain bullish momentum. A rebound could pave the way for a rally toward $6,000, while failure may expose ETH to additional downside risks. For now, the market remains on edge,…

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Filed under: News - @ January 11, 2025 9:22 am