In recent weeks, Ethereum has undergone notable price fluctuations, mirroring a broader downturn in the cryptocurrency market. According to CoinStats data, Ethereum (ETH), the second-largest cryptocurrency, has experienced a 7% decrease over the past month and a 4% decline in the last seven days.
ETH/USD 24-Hour Chart (Source: CoinStats)
At the time of writing, ETH is valued at $2,900.37, indicating a 1.48% drop in the past 24 hours. This downward movement has also affected Ethereum’s market capitalization, which currently stands at $348,268,608,219, reflecting a 1.17% intraday decrease. Additionally, Ethereum’s trading volume has dwindled to $12,024,693,712, showing a 2.23% decline over the last 24 hours.
The prevailing bearish sentiment hints at a potential short-term reversal as investors lock in profits from earlier gains. Despite the current downturn, long-term holders maintain optimism regarding Ethereum’s future, particularly its significance in the decentralized finance sector.
Analyst Observes Bearish Patterns in Ethereum’s Price Trend
Benjamin Cowen, a prominent crypto analyst, has consistently maintained a bearish stance on Ethereum, citing various concerning indicators. He has closely tracked ETH’s price against BTC and predicts a potential decline to around the April 2021 level of $2500.
Cowen recently highlighted Ethereum’s weekly close below its bull market support band, a crucial indicator for short-term price movements. This development has sparked worries among investors, suggesting looming bearish trends.
ETH Falls Below Its Bull Market Support Bandhttps://t.co/lcaxgYQB1H
— Benjamin Cowen (@intocryptoverse) May 13, 2024
Cowen’s analysis indicates that breaching the support band, historically influential in price dynamics, may signal further downturns. Nonetheless, despite his bearish outlook, Cowen recognizes Ethereum’s robust long-term fundamentals.
He suggests that any potential price dip could offer an opportunity for investors. According to him, Ethereum’s strong development and adoption in the decentralized finance sector remain significant growth catalysts.
ETH Price Action
Ethereum’s recent breach of the $2,910 resistance level signals a persistence of its bearish trajectory. Currently, the next support lies at $2,865, with a potential further drop to $2,719 if the downward momentum persists.
ETH/USD 1-Day Chart (Source: Tradingview)
Conversely, an upward surge surpassing the $2,950 barrier could propel Ethereum’s price to around $3,350, a peak last witnessed on April 28. Should this upward trend continue, Ethereum might encounter significant resistance near $3,700.
From a technical standpoint, the Moving Average Convergence Divergence (MACD) indicator, notably at a reading of -82.06, validates the short-term bearish sentiment. The MACD line currently trails below both the signal line and the zero line, reinforcing the potential for sustained bearish trends.
ETH/USD 1-Day Chart (Source: Tradingview)
Additionally, the MACD histogram underscores negative momentum as its bars persistently form below the zero line. This alignment implies that the bearish sentiment in Ethereum’s market may persist in the near term.
The Relative Strength Index (RSI), currently at 39.78, also signals negative momentum, approaching oversold territory. If the RSI ventures into the oversold region, it might hint at a potential reversal. However, with the RSI line still beneath the signal, there remains scope for the bearish trend to prolong before any potential reversal takes place.