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Main reason why Ethereum (ETH) price is down today!
The cryptocurrency market has seen a significant correction of 3.47% in the last 24 hours. Also, major cryptocurrency tokens have shown a similar price trend, breaking down their important levels.
Furthermore, the leader of altcoins, Ethereum Price has seen the highest correction of around 8% among the top 10 cryptocurrencies by market cap. With questions like “Will ETH price retest its $2.8K low?” and “Why is Ethereum falling?”, the cryptocurrency market has entered a FUD-like situation.
Read on to find out in this article the market sentiments, price analysis and possible short-term price predictions of the Ethereum token.
ETH price fails to break above its important resistance level:
After showing a neutral trend for about a week, the altcoin leader, Ethereum price failed to break out of its important resistance zone. This led to a 7.30% correction in the last day with a trading volume of $20.662 billion, a change of 7.83%.
TradingView: ETH/USDT
In particular, the main reason for the decline in the price of the Ethereum cryptocurrency is believed to be a “sell-the-news” situation similar to that experienced by the cryptocurrency market during the launch of the Bitcoin ETF in January this year.
Furthermore, this altcoin has formed a triangle pattern in the 1D time frame and has continued to trade within it since February. With the current market situation, the ETH Price It is expected to retest its support trend line.
Ethereum Market Sentiments:
The Relative Strength Index (RSI) is showing a sharp decline in the 1D time frame, suggesting increased selling pressure. In addition, the average is showing a bearish convergence, suggesting that the price will continue to lose momentum.
The MACD indicator has been consistently falling in the green histogram with its averages suggesting a high possibility of a negative crossover. This highlights a bearish outlook for the altcoin this week.
Will ETH price go up?
If the market regains momentum, the Ethereum token will prepare to test its resistance level of $3,272.50. Also, if the bulls hold the price at that level, it will create the conditions for the ETH coin price to test its upper resistance level of $3,700 in the coming weeks.
On the contrary, if bears continue to dominate the cryptocurrency market, Ethereum price will fall towards its supporting trend line of the triangle pattern. Moreover, if bulls fail to hold the price at that level, the altcoin leader will prepare to test its crucial support of $2,870.