Challenges Facing Ethereum Price Amidst Bearish Pressure targeting Sub-$3,000 Level
The Ethereum (ETH) leadership has come under scrutiny for perceived inefficiencies and a lack of clear direction.
An informal survey revealed that 97% of 335 respondents holding 51,198 ETH expressed support for Danny Ryan, a former researcher, to take the helm at the Ethereum Foundation.
Vitalik Buterin has emphasized his role as the ultimate decision-maker in changes to the Ethereum Foundation’s leadership structure.
Analysis of long-term on-chain metrics indicated a high level of confidence among long-term ETH holders, with only modest profit-taking activities observed based on the LTH NUPL metric.
Despite this, the steady decline of the leading altcoin has persisted in recent weeks.
Ethereum Encounters Resistance at $3,400 Once More
Throughout June and July of 2024, the price range between $3,400 and $3,500 served as a support level for ETH. However, this range subsequently turned into a barrier that led to a pullback during the November rally.
Since then, this particular price region has held significant importance in Ethereum’s price movements.
A failed attempt to break past $3,500 in January led to a reversal, marking a pattern of lower highs and lower lows in ETH’s price trajectory.
Although there were brief surges on January 30th and 31st that benefitted the altcoin market, the gains were short-lived.
The daily Relative Strength Index (RSI) also aligned with the bearish trend, consistently staying below the 50 mark. Furthermore, the On-Balance Volume (OBV) lingered near support levels established in November and December.
The volume indicator indicated a lack of strength on the buyers’ side.
Based on the 3-month liquidation heatmap analysis, a drop to $2,850 seemed highly probable. Notably, there were liquidity clusters present at $3,460, $3,800, and a significant one at $4,200.
The price’s magnetic pull towards and below the $3,000 level indicated a higher probability of a downward movement in the days ahead, aligning with the price behavior observed over the past month.
According to the liquidation heatmap data, the next potential price targets include $3,000, $2,800, and $2,700. However, it remains uncertain if all these levels will be reached in the upcoming weeks. The prevailing sentiment surrounding Bitcoin (BTC) is bearish, advising traders to exercise caution and wait for more favorable trading conditions before considering long positions.
Disclaimer: The information provided is solely the perspective of the writer and should not be construed as financial, investment, or trading advice.