The value of Ethereum is struggling to maintain its upward momentum, dipping below the $4,000 mark as selling pressure intensifies.
Summary
- Ethereum’s price has fallen beneath $4,000, recording a 5% decrease in the last 24 hours and a 15.5% drop over the past week.
- The RSI is currently at 43.60, approaching oversold levels, while the MACD shows a negative divergence, signaling ongoing bearish trends.
- Whale activity presents mixed reactions; while some investors such as Bitmine are taking advantage of the dip, BlackRock has sold off $310.13 million in ETH.
- Support is noted at the $4,000 mark, with resistance positioned at $4,263. A successful breakout could push ETH towards $4,500 or higher.
Ethereum has dipped below the $4,000 threshold, stabilizing around $3,900, as it contends with waning investor interest and negative market sentiment. Currently, ETH is trading at $3,971, according to data from crypto.news.
The second-largest cryptocurrency has seen a decline of roughly 5% for the day and a 15.5% decrease for the week, reflecting persistent bearish patterns. The recent pullback followed an attempt from bulls to break through the $4,263 resistance level, but increased selling pressure resulted in a correction that reduced Ethereum’s price.
Both the RSI and MACD indicators suggest decreasing momentum. Currently, the RSI stands at 43.60, approaching the oversold area, which may imply that selling pressure is nearing its limits. However, as the RSI remains within a neutral zone, further declines could still occur.
In addition, the MACD indicates a negative divergence, with the short-term momentum line (blue) positioned significantly below the long-term momentum line (orange), hinting at a potential continuation of the downtrend unless momentum changes soon.
Effects of Ethereum’s Price Drop on Whale Activity
The current downturn in Ethereum’s price is accompanied by a mixture of buying and selling interest from whale investors. On October 13, Ethereum spot ETFs reported a net outflow of $428.52 million, marking three consecutive days of outflows.
Notably, BlackRock’s ETHA fund accounted for $310.13 million of this outflow. In contrast, some investors, such as Tom Lee’s Bitmine, have seized the opportunity to accumulate $834 million worth of ETH in the past week.
The price of Ethereum has found support around the $4,000 threshold, which may act as a psychological barrier. A decline below this level could push Ethereum towards lower prices, potentially around $3,965. Resistance, however, remains at $4,263. Should ETH manage to breach this resistance, a rally towards $4,500 or even $4,750 could be anticipated.
