Ethereum is currently trading around $4,185, showcasing a decrease of approximately 3.9% to 4.2% within the past day. This decline is part of a broader selloff in the cryptocurrency market, which has triggered over $1.7 billion in altcoin liquidations due to increased market volatility.
Despite these bearish conditions, a significant exodus of more than 420,000 ETH from exchanges this week indicates long-term investors are accumulating. This movement suggests a tightening supply side, which could eventually support upward price momentum. Nevertheless, the immediate market sentiment remains cautious due to ongoing concerns about further price corrections.
Technical analysis reveals that Ethereum’s price is constrained between the $4,000 support and the $4,800 resistance levels, with current support holding above $4,200. This price range is critical, as breaking through $4,500 is seen as essential for renewed bullish momentum. Analysts caution that if support fails, Ethereum may correct towards the $3,700-$3,800 range. Meanwhile, the RSI has dipped to 41, indicating potential continued bearish momentum.
Macroeconomic factors contribute to the current price pressure, including persistent net outflows from U.S. crypto ETFs and concerns over inflation, alongside the potential for interest rate hikes by the Federal Reserve adding caution to the markets.
However, strategists maintain a long-term bullish perspective, viewing any short-term pullback as an accumulation opportunity. They suggest that consistent accumulation, evidenced by significant exchange outflows, shows robust underlying demand, which could stabilize prices and pave the way for a future rally, possibly towards $10,000 ETH later in the cycle.
The coming day or two could be decisive in determining Ethereum’s immediate trajectory. A firm hold above the $4,000 support level, against the macro economic challenges and global market sentiment, will be crucial for sustaining the current price levels or potentially sparking a rebound.