- Ethereum price drops to $2,420, losing 4% in a week and falling below $300B market cap.
- Technical analysis shows bearish signals on 4-hour chart, with potential drop to $2,150.
- On-chain data indicates crucial support at $2,300, where 2.77M addresses hold 52.65M ETH.
Ethereum (ETH) finds itself navigating turbulent waters as its price experiences a notable decline, raising concerns about the sustainability of key support levels. Currently trading at the $2,400 level, ETH has recorded a 2% drop in the past 24 hours and a more substantial 4% decrease over the past week.
This downward movement has pushed Ethereum’s market capitalization below the $300 billion threshold, settling at $291 billion with a 24-hour trading volume of $16.11 trillion.
Technical analysis of Ethereum’s daily chart reveals a larger falling channel pattern, indicative of an ongoing downtrend. The bullish momentum within this bearish channel struggles to gain traction, facing significant resistance at the 50-day Exponential Moving Average (EMA).
Since reaching a 14-day high of $2,729, ETH has retraced 11.52%, though bulls maintain hope as long as the price holds above the crucial $2,350 support level.
Zooming in to the 4-hour timeframe, the likelihood of a breakdown rally increases. The Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover, while the 50, 100, and 200 EMAs have aligned in a bearish formation.
77.54% of Ethereum holders in profit
These technical signals collectively point towards a potential sell opportunity, with key support levels at $2,150, $2,000, and $1,900 should a bearish breakdown materialize.
On-chain metrics provide additional context to Ethereum’s market dynamics. The Global In and Out of Money Indicator from IntoTheBlock reveals that 77.54% of Ethereum’s current supply, approximately 105.62 million ETH tokens valued at $255.43 billion, is “in the money.”
The “At the Money” range spans from $2,412 to $2,511, encompassing 4.85% of the current supply.
Analyst Ali Martinez highlights the significance of the $2,300 level, where nearly 2.77 million addresses hold 52.65 million ETH tokens. This concentration of holdings creates a crucial on-chain support level, potentially influencing Ethereum’s price action in the near term.