In recent months, Ethereum (ETH) has felt heavy bearish pressure. Falling from over $4,000 in December 2024 to current levels near $1,572, almost a 60% decrease in price. It has formed a descending channel on the daily chart, which indicates that downward momentum continues.
While volume has fallen 33.25% in the last 24 hours, ETH price has increased by 4.288% in the same period. Is Ethereum gearing towards recovery, or will the bearish forces continue to dominate?
Ethereum Price Analysis
The price action shows a very long downtrend, beginning in December 2024. After reaching highs around $4,000, ETH has continuously fallen, at present standing at $1,572. That represents a decline of about 60% within four months. The descending channel makes it abundantly clear how strong selling pressure has been for the past few months.
ETH’s price is testing the lower boundary of the descending channel, with the price finding temporary support near $1,422 (0 Fib level).
EMAs are declining, proving that the market structure has a bearish trend. Shorter-duration EMAs rest below, therefore, underlining stronger bearish momentum. Currently, ETH trades under all the major moving averages.
The RSI sits around the 28.37 level indicating ETH is in oversold conditions. Despite oversold levels, buyers are timid to approach aggressively hence suggesting a reserved sentiment in the market. Nevertheless, as soon as the broader market improves, this oversold status may clear possible conditions for a rally.
Ethereum has moved along a well-defined descending channel since December 2024. Prices have clearly rejected rally attempts at the upper boundary while the lower boundary has on a number of occasions seen price support. The present price action is testing this lower boundary at around $1,550 in what has become a critical level at which price could either break down or bounce back.
Key resistance levels are attained between the following Fibonacci levels $2,029 (0.236 Fib level), $2,405 (0.382 Fib level), and $2,709 (0.5 Fib level). Immediate support is at $1,422 (0 Fib level), which is exactly at the lower boundary of the descending channel. A breach below this level will likely trigger escalated selling pressure.
ETH Price Targets
Bears face immediate resistance at the 0.236 Fib level ($2,029) as the first hurdle to overcome. A successful break above this mark has the potential to target the psychologically $2,500 level, near the 0.382 Fib level.
If ETH breaks below the lower boundary of the channel and this falls below the $1,422 support, we can expect it to go further down to $1,200, which is another 24% loss from present levels.
Ethereum Whale Movement Triggers Concern
The ETH market saw intense liquidation pressure after a major Ethereum price drop. A whale lost 67,570 ETH, and it is worth around $106 million. It happened due to liquidation on Maker, following the sudden Ethereum price crash.
The investor, “7 Siblings,” had recently bought 24,817 ETH for roughly $42 million, pushing their total holdings to over 1.2 million ETH, now valued at approximately $1.9 billion.
Since February 3, this whale has purchased about 103,543 ETH at a total cost of $230 million. Currently, they are facing a loss of $64 million on those positions. Whale movement like this has raised concerns in the crypto space, as large-scale investors typically have a significant impact on market sentiment and price action. Crypto news today continues to follow their activity closely.
Credit: Source link
