Ethereum Price Breaks Key Support, Flashes Bearish Takeover – Crypto News – Crypto News
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Ethereum Price Breaks Key Support, Flashes Bearish Takeover – Crypto News

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1 year ago

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    Summary:

  • Ethereum price is under pressure from multiple fronts, including a sharp decline in DeFi performance, but is it all gloom?

Ethereum price was down on Monday, mirroring the broader crypto market struggles. Market bellwether, Bitcoin retested the sub-$100k level, signifying the bearish-leaning market sentiment. Ironically, the crypto market’s slump came on the heels of US President Donald Trump’s establishment of an advisory council to develop a clearer regulatory framework for digital assests.

ETH was traded at $3,117 at the time of writing, having lost 3.1% on the daily chart. In addition, the crypto coin is down by 2.8% on the monthly chart. Significantly, breaking below the $3,200 support underlines the downward-leaning momentum that could exacerbate Ethereum price decline.

Also, the coin trades below the Volume Weighted Moving Average (VWMA), which is at $3,271 on the daily time frame, as of this writing. In addition, its 24-hour trading volume was up by 158%, implying rising selling pressure. Furthermore, Ethereum chain’s DeFi Total Value Locked (TVL) has declined by 6.2% in the last 24 hours, losing more than $3 billion. That has added the downward pressure on Ethereum price.

However, despite its troubles, institutional perception of Ethereum is still relatively strong. Trump-backed World Liberty Financial has recently raised ETH coin’s share of its portfolio to 49.9% or $190 million out of $380 million total holding. Also, its ETF spot market recorded $9.2 million in net inflows on Friday, up from the previous day’s -$14.9 million in net outflows.

Ethereum Price Prediction

Ethereum price pivots at $3,200 and the momentum signals that the downside will prevail if resistance persists at that level. The first support will likely be at $3,110. However, a stronger momentum will break below that level and potentially extend the decline to test $3,020.

Conversely, the momentum will shift to the upside if ETH price breaks above $3,200. In that case, the coin will likely meet resistance at $3,260. Moreover, breaking above that level will invalidate the downside narrative. Also, an extended control by the buyers could clear that barrier and clear the path to test $3,355.

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