Bears Target $2K Amid ETH Momentum Loss

As Ethereum loses its upward momentum, bears are setting their sights on the $2,000 mark. Ethereum’s struggle to regain traction after failing to break the multi-month declining channel around $2.6K emphasizes a potential downward trend aimed at testing the mid-term support around $2.1K.

By Shayan

Daily Chart Insights: Bears Eye Ethereum’s Weakness

Analyzing Ethereum’s daily chart, we witness the unfolding of a clear bull trap. Despite briefly breaking above the critical $2.6K threshold, Ethereum swiftly succumbed to persistent selling pressure, resulting in a substantial 15% decline. This scenario underscores the overarching influence of sellers who have heavily subdued Ethereum’s upward potential.

The occurrence of a “Death Cross,” where the 100-day moving average dips below the 200-day average, signifies a historically bearish signal, reaffirming bears’ control. Consequently, Ethereum may deepen its retracement toward the $2.1K support area, correlating with earlier pivotal lows. This reflects a potential descending consolidation trend in the mid-term, with a focus on $2,000 as a psychological pivot point.

4-Hour Chart Analysis: Bearish Signals Intensify

The 4-hour chart highlights Ethereum’s waning strength, unable to hold its ground around the tight 0.5 ($2.6K) and 0.618 ($2.8K) Fibonacci levels, leading to a noticeable drop toward an ascending flag’s lower boundary at $2.3K. Presently, Ethereum fluctuates near this support with minimal volatility and horizontal consolidation, pointing to market uncertainty.

Although control is teetering between buyers and sellers, bearish influences remain strong, threatening a dip beneath the flag’s boundary. Should Ethereum pierce below this line, a prolonged bearish trend could emerge, targeting the psychological $2K support. Nevertheless, the $2.1K barrier stands as an essential defense to curb further losses.

By Shayan

The chart contrasts the trajectories of Bitcoin and Ethereum ETFs over 79 days since their respective launches. Notably, investor interest in Bitcoin appears robust, drawing in $29.1 billion in ETF inflows. Conversely, Ethereum ETFs experienced a downturn, witnessing a net outflow of $4.1 billion, which signals weaker market demand. Although both remain crucial to the crypto landscape, Bitcoin’s steady inflows suggest higher institutional confidence compared to Ethereum, which may need to address short-term challenges to regain investor enthusiasm.

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