Cryptocurrency Market Witnessed a Volatile Week as Ethereum Price Fluctuates
The cryptocurrency market had an eventful week with Ethereum’s price experiencing fluctuations. Surpassing the critical resistance level of $3,200, Ethereum has reached a trading value of $3,245. However, there are speculations about whether the price will drop to the $2,700 support level or surpass $3,500 once again.
Concerns Arise as Ethereum Price Drops
Ethereum, known as the king of altcoins in the cryptocurrency world, has recently shown a downward trend due to a combination of factors. Although the price of ETH initially saw a 2% increase, it was not sustainable. The decline in the past 24 hours, followed by a slight recovery, has left investors puzzled.
Santiment Data Highlights Selling Pressure on Ethereum
Santiment’s data reveals that the volatility in Ethereum’s price has had a negative impact on its social volume, despite most investors still being in profit. Furthermore, the charts indicate a downward sentiment, suggesting that the price may continue to retract. This aligns with the prediction made by crypto analyst Crypto Tony, who anticipates a support level of $2,700. If Ethereum reaches this level, it may face challenges in surpassing the $3,600 resistance level.
Increased Selling Pressure on Ethereum According to Santiment Data
An analysis of Santiment data indicates an increase in selling pressure on Ethereum. The rise in exchanges over the past week signifies a strengthening of this selling pressure. However, it is important to note that whales, prominent investors, still have trust in Ethereum, as evidenced by an increase in the supply held by top addresses.
Examining the daily chart, the Money Flow Index shows an upward trend, although other indicators suggest a potential price drop. The Relative Strength Index and Chaikin Money Flow both indicate a high likelihood of a decrease in price.
The Importance of the $2,700 Support Level for Ethereum
The $2,700 support level holds critical importance for Ethereum at this stage. If the price falls below this level, it is predicted that Ethereum will experience further decline and may even drop to $2,500. However, it is crucial to keep in mind that the market always carries uncertainties. While Ethereum’s price sometimes moves independently from Bitcoin and other cryptocurrencies, a decline in BTC could significantly impact Ethereum, which leads the altcoin market.
Disclaimer:
This article does not provide investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
