Another decline in Ethereum price warns of suppression of the local support line. Will Altcoin Survive?
Ethereum price is currently trading at $2,418, down 2.85% in 24 hours. It has fallen 8.56% over the past seven days and missed the $300 billion market cap threshold. Ethereum’s valuation is now $291 billion, with a 24-hour trading volume of $16.11 trillion.
Will Ethereum be able to maintain its position above $2,400 as selling pressure intensifies again amid increased market volatility? Let’s look at key support levels and potential price trends.
Ethereum Price Analysis
The daily chart is indicating a larger downward channel pattern, signaling an ongoing downtrend. Additionally, the bullish momentum in the bearish channel is struggling to gain momentum due to significant supply at the 50-day EMA.
Following the recent market correction, the price of ETH has dropped from a 14-day high of $2,729 to its current level, representing a decline of 11.52%. However, bullish sentiment remains intact as long as the price remains above the key support level of $2,350.
On the 4-hour chart, the likelihood of a growth breakout increases.
Bullish resistance on this time frame has led to a new pullback. With increasing selling pressure, ETH price is approaching a local support line near the $2,350 mark.
Moreover, the MACD indicator on the 4-hour chart is showing a bearish crossover. The 50, 100 and 200 EMA also showed bearish crossovers, consistent with a downtrend.
Consequently, technical indicators on the 4-hour chart are signaling a selling opportunity. If a bearish breakout occurs, the next significant support levels for ETH would be $2,150, the psychological $2,000 mark, and the $1,900 support level.
Analyst notes important online support at $2,300
According to IntoTheBlock’s global in-and-out indicator, 77.54% of Ethereum’s current supply is “in the money”, which equates to approximately 105.62 million ETH tokens worth $255.43 billion.
The “At the Money” range currently ranges from $2,412 to $2,511, covering 6.66 million ETH, or 4.85% of the current supply valued at $15.97 billion. Meanwhile, 23.99 million ETH tokens worth $58.02 billion are classified as “out-of-the-money”, representing 17.61% of the total supply.
Analyst Ali Martinez noted the importance of this profitability metric, highlighting that Ethereum’s critical support level is approximately $2,300 as nearly 2.77 million addresses hold 52.65 million ETH tokens..
Open interest in Ethereum options exceeds $5 billion
With the Ethereum price approaching the $2,400 threshold, Ethereum’s open interest fell 1.02% to now stand at $11.44 billion. The options market is showing volatility, as evidenced by a 28.50% increase in options volume to $46.465 million.
Data from CoinGlass indicates that open interest in Ethereum options increased by 2.44%, reaching $5.07 billion.
The long to short ratio over the past 24 hours was 0.96, indicating mild bearish sentiment. However, Binance’s top traders are showing strong bullish expectations on Ethereum, with a long-short ratio of 3.48 and a position ratio of 2.12.
Over the last 24 hours, the market liquidated $51.23 million of Ethereum positions, with $43.17 million of long positions liquidated compared to $8.05 million of short positions.
With more than five times as many long positions liquidated as short positions, overall sentiment regarding Ethereum’s price trend remains bearish. In this situation, Ethereum is likely to test critical support levels around $2350, $2300 or $2150 if the sell-off in the broader market continues.
