- Ethereum is hovering around the $3.8K range.
- The ETH market recorded $193.78M in liquidations.
The active bearish sentiment lingering across the digital asset is pushing their prices down to deepen the red charts. The largest asset, Bitcoin (BTC) is currently hovering at around $109.6K, while Ethereum (ETH), the largest altcoin is trading on the downside, under pressure. The sturdy bearish wave of the asset is strengthening after multiple rejections.
ETH has registered a modest loss of over 1.64%, and with the existing bears, it could form a solid negative trend line. The altcoin’s recovery attempts have end up bringing strength to the bear market. Before the bears gained enough strength, the ETH price was trading at around $3,944.87. Later, it has retraced to a bottom range of $3,681.91.
At the time of writing, Ethereum traded within the $3,835.43 range, with the market cap holding at $462.32 billion. Besides, the daily trading volume has reached $38.86 billion after a brief loss. The Coinglass data has reported that the market has observed a liquidation of $193.78 million worth of Ethereum during the last 24 hours.
How Deep Will Ethereum Dip?
Ethereum’s both the Moving Average Convergence Divergence (MACD) and signal lines are settled below the zero line. It indicates the active bearish condition and the market sentiment remains weak. If the lines begin to move upward, it could hint an early sign of a potential bullish reversal.
In addition, the Chaikin Money Flow (CMF) indicator positioned at -0.21 suggests that the selling pressure dominates the ETH market. The traders are moving capital out of the asset. It shows weak buying momentum and the possibility of more downside unless the value turns positive.
With the ongoing bearish pressure, Ethereum could slip toward the crucial support at around $3,825. A potential downside correction might trigger the emergence of the death cross and opens the door for the asset’s steady drop to the $3,815 range or even lower.
Assuming Ethereum turns the bearish outlook bullish, it might attempt to rise and find the $3,845 resistance. A breakout above this price zone could initiate the golden cross to unfold. Notably, the bulls may likely drive the price up toward the $3,855 level or higher.
Moreover, ETH’s Bull Bear Power (BBP) reading of -56.84 implies a strong bearish momentum in the market. The sellers are pushing the price and unless buying pressure increases, the downtrend could persist. Ethereum’s daily Relative Strength Index (RSI) found at 42.46 signals its neutral to mildly bearish zone. Also, the asset is not oversold yet, and a rebound could occur if the buyers start stepping in.
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