Will Ethereum Price Break Downtrend With Support from Whale Movements?

Ethereum price: Amid the current market sell-off, the Ethereum coin witnessed a notable correction with the price falling from $4091 to $3060. This 25% downswing recently hit the 38.2% Fibonacci retracement level, a tool projecting the crucial support for an asset to rebound. However, as Bitcoin price faces additional supply pressure from the increasing outflow from spot ETF, the altcoins are at risk for further downfall.

Also Read: Crypto Prices Today March 23: Bitcoin Dips Below $64K, Ethereum At $3300, XRP & SOL Drop

Ethereum Defies SEC Scrutiny as Whales and Technicals Suggest Rebound

BINANCE:ETHUSD Chart — Ethereum Price| Tradingview

In the face of SEC scrutiny and broader market correction, the Ethereum price showcased a V-top reversal from the March 11th high of $4090. However, data from Santiment reveals an uptick in whale activity, with the year’s highest recorded levels suggesting substantial market interest.

The RSI indicator has plummeted to 28.5, its lowest point since a similar market bottom in late January, hinting at an oversold condition. This metric, coupled with a 7% decrease in the 30-day average trader returns, could be forecasting a turnaround for Ethereum, as market conditions appear ripe for a potential recovery.

📊📉 #Ethereum‘s community has been uniting with #Solana‘s to combat against the #SEC security allegations. Meanwhile, the price of $ETH has retraced -18% since its top on March 11th.
Whale activity has been at the highest level of 2024 as the asset polarizes traders over the… pic.twitter.com/T1kHPufLtb
— Santiment (@santimentfeed) March 22, 2024

The ETH price currently trades at $3402 and with an intraday gain of 2.14%, it teases a breakout from the overhead trendline. This dynamic resistance carries the current downturn and its breakout will signal a better confirmation of recovery.

The post-breakout rally could push the ETH price back to $3780, followed by $4090.

Will Ethereum Price See Deeper Correction?

The Spot BTC ETFs witnessed a total of $888 Million flowing out of the 10 ETFs this week, notably contributing to the current market correction. If the bearish momentum persists on these ETFs in the coming week, the ETH price may break the combined support of 38.2% FIB and $3120. Losing this support could accelerate the supply pressure and plunge the coin to $2800-$2700 support.

Technical Indicator

Exponential Moving Average: The coin price above 50-and-100-day EMA indicates a broader trend that remains bullish.
Moving Average Convergence Divergence: A bearish crossover between the MACD(blue) and signal(orange) the current correction is aggressive.

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/will-ethereum-price-break-downtrend-support/