Key Points
- Ethereum’s price climbed past $3.2k last week but soon turned bearish, potentially falling to its $2.7k support level.
- Despite the bearish trend, 79% of Ethereum investors remain in profit and whales continue to hold their supply.
Ethereum [ETH] experienced a price surge last week, exceeding $3.2k. However, the cryptocurrency soon exhibited a bearish trend as it failed to maintain its chart position.
In a worst-case scenario, ETH could potentially drop to its $2.7k support level.
According to CoinMarketCap, ETH’s price saw a 2% appreciation last week, breaching the $3.2k mark on 24 April. Unfortunately, this uptrend was short-lived as the price fell within the next 24 hours. At the time of writing, ETH was trading at $3,118.13 with a market capitalization exceeding $380 billion.
Investor Sentiment and Market Indicators
Data from IntoTheBlock reveals that 79% of Ethereum investors are still profiting. However, the decline in ETH’s price has negatively impacted its social volume. Following a spike on 25 April, its weighted sentiment dropped, indicating an increase in bearish sentiment around ETH.
If ETH continues to record price corrections, its value might drop to the $2.7k support level in the coming days, as per a recent tweet from Crypto Tony, a popular cryptocurrency analyst. The likelihood of ETH hitting this support level would increase if it fails to surpass $3.6k.
A review of Santiment’s data shows increasing selling pressure on the token, as evidenced by the rise in its exchange inflows over the past week. This was further substantiated by the increase in ETH’s supply on exchanges.
However, whales seem to remain confident in ETH as the supply held by top addresses has increased.
Market Predictions
An examination of ETH’s daily chart indicates that a sustained downtrend may not be inevitable. The Money Flow Index (MFI) went north, suggesting a potential price uptick. However, other indicators appear bearish. Both ETH’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) headed south, indicating a high chance of further price drops.
An analysis of Hyblock Capital’s data reveals that ETH has a strong support level near $3.1k if a price correction occurs. A drop below this level could result in ETH plummeting to $2.8k before reaching its tested support level at $2.7k in the coming days or weeks.
