Bears Dominate Global Crypto Market as Ethereum Hits Critical Levels

  • Large ETH whale transfers hint at possible sell-offs and repositioning.
  • RSI at 47.33 shows bearish sentiment, with potential for further declines.

The global cryptocurrency market cap currently stands at $2.28 trillion, reflecting a 5.96% drop in the last 24 hours. This decline may be partly driven by shifts in the U.S. election predictions, as recent data shows that the odds of Trump winning have dropped to 2.8%. This adjustment in election sentiment could be affecting market confidence, adding pressure on major cryptocurrencies, including Ethereum.

Ethereum is trading at $2,511.96, marking a 5% dip over the past day. The ETH’s market cap is at $302.46 billion, contributing about 13.3% to the global crypto market. In the past 24 hours, Ethereum’s trading volume reached $21.04 billion, down 3.9%, indicating a cautious mood among investors as election uncertainties ripple through the market.

Interest in Ethereum ETFs surged this week, with inflows totalling $13.65 million, the highest in the past seven days. In contrast, Bitcoin ETFs saw their lowest inflows over the same period. This shift suggests that institutional investors are now favouring ETHexposure over Bitcoin, likely due to Ethereum’s unique position in decentralized finance and smart contract utility. The strong inflows into Ethereum ETFs underscore long-term confidence in Ethereum’s growth, despite short-term market pressures.

Whale Activity and Key Technical Levels for Ethereum

Recent whale transactions have also impacted Ethereum’s market. In a significant transfer, 13,162 ETH (approximately $33.1 million) moved from an unknown wallet to Coinbase, potentially signalling a future sell-off. Another 20,000 ETH (worth around $50.4 million) was transferred from Bitfinex to an unknown wallet, suggesting strategic repositioning among major holders. Such movements often foreshadow potential price shifts, as large transfers can influence liquidity and supply in the market.

On the technical side, Ethereum’s immediate support is at $2,514, while resistance stands at $2,576.94. A breach above this resistance level could push Ethereum toward $2,600, whereas a drop below support may lead to further declines toward $2,467. The Relative Strength Index (RSI) currently reads 47.33, below the average of 52.71, indicating a bearish sentiment and potential selling pressure.

Additionally, the 9-day moving average (MA) at $2,540.54 has crossed below the 21-day MA at $2,576.94, signalling a bearish crossover. This trend suggests continued downside risk in the near term, as Ethereum may struggle to break above resistance without renewed buying momentum.

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Source: https://thenewscrypto.com/bears-dominate-global-crypto-market-as-ethereum-hits-critical-levels/