Ethereum (ETH) has experienced a 10.08% decline over the past week, trading sideways with increased volatility. Analysts express concern about the declining funding rate and Relative Vigor Index, suggesting a potential shift towards bearish sentiment. The crucial $3k support level is key for ETH's future direction.
ETH has declined by 10.08% over the last 7 days and struggled to maintain any upward momentum on the charts. Over this period, the altcoin has seen extreme price fluctuations while trading sideways. At press time, Ethereum was trading at $3,232, marking a 10.08% decline on the weekly charts, with an extension to this bearish trend by another 1.85% dip on the daily timeframe.
ETH's inability to record any sustained gains has raised concerns in the crypto community, with analysts expressing uncertainty. For instance, Cryptoquant analyst Shayan suggests that ETH must hold its $3k support level to sustain an uptrend. Shayan notes that Ethereum's funding rate has seen a sharp decline since the altcoin faced rejection at its $4k resistance. This notable drop in funding rate is a sign of reduced demand, weakening Ethereum's bullish momentum. Without renewed market confidence among investors, sustaining an uptrend becomes difficult. As the funding rate declines, ETH risks dropping below $3k. Therefore, the $3k support level is essential for ETH's stability and for reigniting any northbound rally. If it breaches this level while the funding rate continues to drop, ETH will see intensified selling and a deeper correction. The overall Ethereum outlook depends on the altcoin reclaiming a higher funding rate to defend the $3k support level. These two will determine the next direction Ethereum takes. Notably, when the funding rate sharply declines, it means that investors are closing long positions. Simply put, the findings for ETH alluded to a potential shift in market sentiment to bearishness. We can see this weakening uptrend through the decline in the Relative Vigor Index. This has declined over the past 4 days, pointing to strong downward momentum and a weakening uptrend.Looking further, this shift in market sentiment can be evidenced by the rising demand for short positions. According to Coinglass, most traders have been going short on ETH with 52% of the total accounts. Finally, Ethereum’s MVRV long-short difference declined over the past week to 9.86%. Such a drop not only signals reduced profitability for long-term holders, but also a rising lack of confidence among long-term holders. When long-term holders lose confidence, they tend to sell, putting ETH in a weak position that could see the altcoin decline. If this trend continues while investors hold bearish sentiments, ETH could see a drop to $3,160. To keep the bullish momentum, the $3k support level must hold. A move below $3,026 could see ETH dip to $2,800
ETHEREUM CRYPTO PRICE SUPPORT FUNDING RATE BEARISH SENTIMENT
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ETH Price Mimics MicroStrategy: Could Ethereum Reach $14,000?A comparative analysis of ETH price action and MicroStrategy's stock performance from 2021 to 2025 reveals a potential for substantial ETH growth. Both assets experienced a similar decline in 2021 followed by a recovery phase with higher lows, suggesting investor confidence. If ETH continues this pattern, it could reach $14,000. The analysis also highlights ETH's breakout from a key resistance zone and its potential to leverage volatility in the market.
Read more »
Ethereum hits $5.2K realized price band: New rally for ETH?Ethereum’s market activity is surging, but rising exchange inflows suggest that investors may be preparing for a sell-off.
Read more »
Ethereum whales purchase $1B worth of ETH: Market recovery ahead?Ethereum whales acquired 340,000 ETH, valued over $1 billion, suggesting strategic bulk purchases during price dips.
Read more »
Ethereum whale scoops up 5K tokens: Will it shake up ETH prices?Ethereum whale withdraws 5160 tokens worth $20 million from Binance. ETH has made a moderate recovery rising by 3.7%.
Read more »
Base, a Layer 2 Ethereum Solution, Surpasses Ethereum Mainnet in TransactionsBase, a Layer 2 scaling solution built on Ethereum, has achieved a groundbreaking milestone by processing more transactions than the Ethereum Mainnet. This achievement highlights the growing dominance of Layer 2 networks and signals a shift in blockchain dynamics.
Read more »
ETH Price Finds Support as Whales Continue Selling PressureEthereum (ETH) price finds support around $3,030-$3,130 despite continued selling pressure from whales. A potential local bottom is forming, but a break below $3K could trigger further sell-offs.
Read more »