Why Ethereum Price is Down Today?

Why Ethereum Price is Down Today?

Ethereum Price Today: $3,480

Ethereum, the second-largest cryptocurrency by market cap, is currently priced at $3,480. Over the past week, it has experienced a 12.44% decline, reflecting a market-wide correction. This downturn, marked by three consecutive bearish candles on the daily chart, has raised concerns among investors. Amid these challenges, many are turning to ETH price prediction analyses to gauge potential recovery or further declines in the coming weeks.


  1. Rejection at $4,100:
    The bearish momentum began after Ethereum faced resistance at $4,100, a key level just shy of its all-time high.

  2. Break Below 50-Day EMA:
    The price slipped under the 50-day Exponential Moving Average (EMA), signaling a prolonged downtrend.

  3. 78.60% Fibonacci Retracement Level:
    Ethereum has now reached the 78.60% Fibonacci retracement level at $3,553, with the current market price stabilizing around $3,404.


Market Indicators: What’s Next for Ethereum?

  • RSI Near Oversold:
    The Relative Strength Index (RSI) has dropped below the halfway mark, nearing the oversold zone. This signals an increase in selling pressure but may also hint at a potential reversal.

  • **Trading Volume Surge:
    **In the last 24 hours, Ethereum’s trading volume has jumped by 45%, with 70% of the activity being buying pressure, indicating that investors are buying the dip.

Also Read: VeChain Price Prediction 2025, 2026 – 2030


US Investors and ETF Outflows

Despite the uptick in buying, US investors remain a key source of selling pressure. The Coinbase Premium Index, which measures price differences between Coinbase Pro and Binance, has been declining. This reflects continued selling from US-based traders, likely influenced by the Federal Reserve’s hawkish stance for 2025.

Additionally, Ethereum ETFs recorded net outflows of $60.5 million on Thursday, ending an 18-day streak of inflows. This highlights growing caution among institutional investors.


Stability Ahead or More Volatility?

With the holiday season approaching, analysts expect a period of relative stability. James Toledano, COO at Unity Wallet, noted that institutional activity might slow down, reducing volatility in the short term.

However, as the 2024 presidential inauguration draws closer, market dynamics could shift again, especially with pro-crypto sentiments gaining traction.


Ethereum Price Prediction: What’s in Store?

  • 2024: Analysts anticipate Ethereum could regain momentum, supported by reduced selling pressure and potential regulatory clarity.

  • 2025: With institutional adoption on the rise, Ethereum’s price might test new highs.

  • 2030: Long-term projections suggest Ethereum could reach levels surpassing its all-time high, driven by advancements in blockchain technology and DeFi adoption.


Key Takeaways for Investors

  • Will Ethereum Go Up? Short-term trends suggest stabilization near $3,400, but long-term growth remains promising.

  • ETH Price Prediction hinges on several factors, including institutional demand, regulatory developments, and global economic conditions.

  • Actionable Tip: Watch for signs of trend reversals, such as RSI recovery or increased inflows to exchanges and ETFs.


FAQs

**What is Ethereum’s all-time high?
**Ethereum’s all-time high was $4,878, reached in November 2021.

Why is Ethereum dropping?
The recent decline is due to market corrections triggered by macroeconomic factors, including the Fed’s hawkish policies and increased selling pressure from US investors.

**Is it a good time to buy ETH?
**With 70% of trading volume being buying activity, many investors view the current dip as a buying opportunity. However, risk assessment is crucial.