Ethereum's price has experienced a significant pullback, falling below crucial support levels at $2,420 and $2,400 as it tested the $2,300 mark. Despite a tumultuous period, Ethereum is currently showing signs of a potential recovery, although significant challenges remain.
Currently, Ethereum is trading below the $2,500 mark, with a live price of $2,394.58. The trading volume over the last 24 hours has been notably high, at approximately $14.85 billion, indicating a heightened level of activity in the market. The price of Ethereum has dropped by about 5.54% within this period, underlining the volatile nature of the cryptocurrency market.
The recent dip has extended losses that began at the $2,420 level, pushing the price further past the $2,400 support. The appearance of bullish activity at a low of $2,308 suggests that investors are still interested in buying at lower levels, potentially setting the stage for a recovery. Ethereum surpassed resistance levels at $2,320 and $2,350 following this dip, though it encountered resistance at $2,400 in the recent trading sessions.
The current technical landscape for Ethereum suggests a precarious position below the critical $2,500 resistance level. Ethereum's recent price activity on the 4-hour chart reveals a consolidation pattern after significant volatility. Ethereum is hovering below the crucial $2,400 level, indicating ongoing selling pressure and a possible stabilization as prices have not made new lows in recent sessions.
In recent periods, Ethereum's price has tested the lower Keltner band, a potential signal of oversold conditions. However, it's important to watch whether the price breaks below this lower band for a more bearish move. Currently, the price is around $2,394, very close to the lower band of $2,367, suggesting caution around this area. The middle or upper Keltner band might act as the next resistance level if it rebounds from here.
The MACD indicator, which shows the relationship between two moving averages of Ethereum’s price, gives more insight into momentum. The histogram is below zero, and the MACD line is below the signal line, so it’s bearish. The negative MACD values of -10.9 and -19.1 confirm the downtrend.
But Ethereum has big hurdles ahead. A close above $2,500 could take it to $2,550 and then $2,650. A break above that could be bullish. On the other hand if Ethereum can’t break above $2,440, another dip could be incoming. Immediate support is at $2,320, then $2,300. A break below that could lead to further losses and take it to $2,250 and possibly $2,120. The next big support is at $2,040, which could be the line in the sand to prevent further drops.
Market sentiment is bearish overall due to macro and sector-specific events. Ethereum on-chain lending markets have seen their 2nd biggest liquidation wave since the 2021 market correction.
This month, Ethereum has dropped 22%, and the lowest point was 35% from previous highs, which triggered a series of liquidations. $436 million worth of positions got liquidated across various lending platforms. AAVE, a major player in the DeFi space, was the biggest victim, with $289 million, or 66% of the total.
Market watchers are looking closely at Ethereum’s recent price action, especially with Bitcoin’s big drop. Ethereum followed the same path and dropped 5.7% in the last week. Ethereum is at key support levels, according to Lark Davis, and could be a buying opportunity before the big bullish move in Q4. More insights suggest that Ethereum’s short term price is heavily dependent on Bitcoin’s performance since they are correlated. Historical data shows that September is a losing month for Bitcoin and could mean further pressure on Ethereum.