The price of Ethereum (ETH) dropped below the crucial $2,000 mark to trade at $1,999 on Monday morning. Over the past day, the second-largest cryptocurrency by market value saw a 5.5% loss, continuing its around 20% weekly decline.
Former US President Donald Trump issued an Executive Order creating a Strategic Bitcoin Reserv, which is putting negative pressure on the cryptocurrency market.
This action has improved institutional acceptance of Bitcoin, but traders were disappointed when the government did not immediately declare plans to buy Bitcoin, which contributed to a fall in Ethereum and other digital assets.
Ethereum’s technological design suggests that its price will probably continue to be low. Since more than a year ago, the asset has been subject to continuous pushback at critical levels. Ethereum has never been able to rise above the quarterly Parabolic SAR signal, which shows significant resistance, according to analyst Tony “The Bull” Severino.
Ethereum has been hampered by the quarterly SuperTrend resistance level, a sign that traders are reluctant to take up fresh bets. The crucial resistance barrier at $2,100 has replaced the prior significant support area.
When ETH breaks below the lower Bollinger Band’s $2,098 barrier and market selling activity picks up, the possible decline will reach $1,105. On-chain data shows that big investors are still buying Ethereum, which is in conflict with the bearish technical signals.
According to cryptocurrency expert Ali Martinez, throughout the past 48 hours, the purchasing activity of wallets holding more than 100,000 ETH has increased to about 330,000 ETH. According to current market signs, a Wyckoff reaccumulation phase may precede a significant surge.
Ethereum must break above $2,125 in order to create fresh upward momentum in a bullish comeback. If ETH breaks through its present resistance level of $2,125, it might move up toward $2,359. Maintaining current support levels is necessary to stop additional
FAQ
Ethereum experienced a significant decline due to overall bearish market conditions, technical resistance levels, and disappointment among traders regarding the U.S. government’s stance on Bitcoin after the Strategic Bitcoin Reserve announcement.
Ethereum has been struggling to break above the quarterly Parabolic SAR signal and the SuperTrend resistance level. The critical resistance barrier is now set at $2,100, replacing a previous support level.
Yes, if selling pressure continues and Ethereum remains below crucial support levels, analysts predict a possible decline to around $1,105. However, strong buying activity from large investors may counteract this bearish trend.
Despite the bearish signals, on-chain data shows that large investors are accumulating Ethereum. If Ethereum breaks above $2,125, it could gain upward momentum and potentially rise toward $2,359.
While the Strategic Bitcoin Reserve announcement has increased institutional interest in Bitcoin, Ethereum has not directly benefited. The lack of immediate government action regarding Bitcoin purchases has contributed to a broader market downturn, impacting ETH as well.
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