- Ethereum struggles below $3,100 as market momentum weakens, signaling a possible test of lower support levels soon.
- Analysts warn that ETH may miss February highs, emphasizing sideways movement and the importance of key resistance levels.
- Positive sentiment hinges on reclaiming $3,400; otherwise, ETH could revisit $3,000 amid ongoing consolidation.
Ethereum is currently showing some signs of tiring strength as it tries to break certain levels of resistance. Some analysts believe that until it is able to regain support at higher levels, it is likely that it could move to lower support levels.
At the time of writing, ETH is trading at $3,089.90, with a 24-hour trading volume of $16.87 billion and a market cap of $373.84 billion. Over the past day, ETH has seen a slight decline of 0.55%, signaling a period of consolidation after recent market fluctuations.
Ethereum Likely to Miss February Highs
Some crypto market analysts have commented on the current state of Ethereum. Ali Martinez, a well-known crypto analyst, has warned that Ethereum is not likely to achieve new record highs by February, given some of the positive predictions that were made. “The current market conditions do not support a strong positive push,” Martinez said.
Ethereum Price Moves Sideways Ahead
Meanwhile, another analyst, Ted, suggested that it is important to note that the current movement of ETH is sideways, without much momentum. This implies that the markets are yet to decide what to do next, so investors need to monitor key support and resistance levels.
Analysts note that for Ethereum to indicate a positive sentiment, it must regain the $3,400 benchmark. As long as it remains below that, there is a great possibility that it could test $3,000 again. This is what the community is waiting for since breaking below $3,000 could mean more declines for the altcoin.
Despite the recent correction, it is evident that Ethereum still maintains considerable strength in the market with a good trading volume. It is advisable to observe the markets for some time to understand if it is likely to continue moving sideways or regain positive traction.
Also Read | Ethereum Price Outlook: Could ETH Plunge Towards $2,400 Next?
ETH Weekly Momentum Turns Cautious
The RSI for the week is approximately 44.06, which is below the mid-50 levels, indicating that the momentum is weak but not oversold. The current market is trading below the short-term moving average ribbon with a strong resistance at the 20-week SMA of 3,912. Additionally, the 50- & 100-week SMAs of 3,084-3,082 are being tested, while the 200-week SMA of 2,453 is standing as a strong support.
The MACD is bearish with the MACD line closest to -35.71, which is significantly lower than the signal line of 156.74. This is accompanied by the MACD histogram that is strongly negative at -192.46, indicating that selling momentum is still dominating. It would be important for the MACD to flatten or bend upward before any positive thrust is anticipated in the weekly trends.
Also Read | Ethereum’s Net Taker Volume Climbing: Is a Bullish Trend Ahead?
