Ethereum lost another 13% in the last week. On Monday, early morning, the price of Altcoin dropped to $ 1,997 – this is the lowest level since December 2023.
With an increase in bear mood, the price of Ethereum (ETH) can soon fall below the psychological mark $ 2,000.
ETH sales are growing, 50% of holders at a loss
Ethereum from January 25 is traded significantly lower than the Ishimoku cloud. At the time of writing, the line a (green) and b (red) create a dynamic resistance above the current price at levels of $ 2,346 and $ 2,742, respectively.
Ishimoku cloud helps to track market trends and determine potential levels of support and resistance. If the price is above the cloud, the market is in an upward trend. If the price is below the cloud, then the market in a descending trend. In this case, the cloud becomes a resistance zone, increasing the likelihood of further fall, if the price remains below it.
The fall in the price of ETH has led to losses for many investors. According to Glassnode, the share of the ETH addresses with the average purchase price above the current price decreased to 50%. This is at least for the current year.
At the moment, only half of all addresses owning Ethereum are profitable. At the beginning of the year, this indicator was significantly higher – 82%. Such dynamics can provoke sales among traders seeking to minimize losses, getting rid of assets.
If sales are intensified, this can lead to a further decrease in the price, strengthen the bear trend and, possibly, cause more operation of the stop losses.
Ethereum: breakdown $ 1 924 or rally above $ 2,500
ETH support at $ 2,000 may not withstand if the sales pressure continues. This can lead to a further reduction in price in the coming days. According to the Fibonacci correction tool, the price may fall to $ 1,924 if the demand weakens even more.
However, if market moods improve, this can change the situation. With an increase in demand for ETH, the price can reach $ 2,224. If this level becomes a support, Ethereum can rise to the treasured level of $ 2,500.
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Source: Cryptocurrency
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