Bears target $2K as ETH loses positive momentum

ethereum's recent failure to reclaim the mid-threshold of the multi-month descending channel of $2,600 has resulted in a significant rejection, indicating a possible continuation of the downtrend towards the medium-term support level of $2,100.

By shayan

The daily chart

ethereum price movement on the daily chart reflects a bullish trap. After briefly breaking above the $2.6K resistance, the price quickly lost momentum due to intense selling pressure, leading to a 15% drop.

This rejection underlines the dominance of sellers in the market as eth failed to regain this critical threshold. Adding to the bearish sentiment, a “Death Crossing” has occurred, where the 100-day moving average crossed below the 200-day moving average, a historically bearish signal.

The market is now primed for a further pullback towards the $2,100 support zone, which lines up with a previous significant low. ethereum is expected to enter a descending consolidation phase, with a gradual downward trend towards this key level in the medium term.

The 4 hour chart

On the 4-hour chart, eth's struggle to maintain momentum near the 0.5 ($2,600) – 0.618 ($2,800) Fibonacci levels triggered a sharp decline towards the lower boundary of the $2,300 ascending flag. ethereum is currently hovering around this support level, with low volatility and sideways consolidation, indicating market indecision.

Although buyers or sellers have no explicit control at this time, the bearish momentum suggests that they are trying to push the price below the flag's lower boundary.

If ethereum falls below this level, it could trigger a sustained negative trend, targeting psychological support at $2,000. However, the $2.1k threshold remains a crucial defense for buyers to avoid a further decline.

By shayan

The chart provided highlights a stark contrast between the performance of the bitcoin and ethereum ETFs over the 79 days since their launch. The divergence in investor behavior suggests different levels of demand and confidence between these two cryptocurrencies, with bitcoin showing substantial inflows and ethereum struggling to attract interest.

As of the 79th, bitcoin ETFs have accumulated $29.1 billion in inflows, and total assets under management rose from $29.2 billion at the beginning to a high of $58.3 billion before stabilizing around $59.7 billion . This growth reflects a steady and consistent demand for bitcoin from investors.

By contrast, ethereum ETFs have seen a net outflow of $4.1 billion over the same period, and assets under management have declined from $10.7 billion to $6.6 billion.

The continued downward trend reflects weak demand, indicating that ethereum, a dominant force in the broader crypto ecosystem, has yet to garner the same level of interest from ETF investors. This trend suggests that while both assets are pivotal in the cryptocurrency market, bitcoin's stability and institutional adoption currently make it the most attractive option in ETF products. At the same time, ethereum may need to overcome near-term market concerns to regain its footing.

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