Ethereum Price Dips: $3K Support at Risk
Ethereum (ETH) is facing renewed bearish pressure, struggling to reclaim the $3,400 support level. Recent price action and on-chain data suggest a potential drop below the crucial $3,000 mark could be imminent.
Key Indicators Point to Further Decline
- Failed Support: Ethereum's attempts to regain $3,400 as support have been unsuccessful.
- Liquidation Signals: High levels of liquidations indicate a significant possibility of a move below $3,000.
While long-term holders show continued confidence, as indicated by the LTH NUPL metric, this hasn’t been enough to counter the recent downtrend. The daily RSI is below 50, and the OBV is hovering around support levels seen in November and December, suggesting weak buyer sentiment.
Leadership Uncertainty and Market Sentiment
Recent debates surrounding Ethereum Foundation leadership, with 97% of 335 voters supporting Danny Ryan, have added to market uncertainty. Vitalik Buterin's clarification that he remains the sole decision-maker hasn't eased concerns about efficiency and direction. This uncertainty, coupled with weak sentiment surrounding Bitcoin (BTC), creates a cautious environment for investors.
Technical Analysis and Liquidation Heatmap
The $3,400-$3,500 range, previously a support zone, has become resistance. A recent rally in late January was short-lived, resulting in lower highs and lower lows. The 3-month liquidation heatmap strongly suggests a move towards $2,850 is highly probable, with further potential targets at $2,700 and $2,800. Conversely, significant liquidity lies at $3,460, $3,800 and a substantial cluster around $4,200.
Note: The information presented here is for informational purposes only and does not constitute financial advice.
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