Ethereum
This Ethereum (ETH) move was unexpected — TradingView News
Ethereum was gaining ground in the market, but this continued severe consolidation that led to virtually nothing and simply dragged ETH to around $3,800 was a crucial signal that was a clue to the asset’s future performance .
The ETH price action surprised many traders despite its previous strong momentum. Ethereum went through a consolidation phase after encountering resistance at around $3,800. This sideways movement, which often portends market indecision, portends the most recent decline we have seen. ETHUSD Chart by TradingView
Ethereum has seen a significant decline in recent days, reaching levels near $3,500. The market has been quite upbeat overall, so many people have been disconcerted by the sharp decline. Several reasons could explain this sudden decision. First, liquidity problems can be very significant.
Low liquidity can lead to more pronounced price fluctuations, as we have seen with different trading pairs on platforms such as Binance. In the case of Ethereum, the recent decline may have been caused by a sharp decrease in buying pressure, which would have made it easier for sellers to push prices down. Macroeconomic variables also always come into play, as does investor sentiment.
Technical indicators indicate that ETH was sold off massively in a short period of time. The Relative Strength Index (RSI) has recently dipped into oversold territory. If buyers re-enter the market, this may suggest the possibility of a rebound. Moving averages (MAs) also exhibit a troubling pattern: short-term MAs cross below longer-term MAs, which is usually a sign of a downtrend.