Ethereum (ETH) has exhibited limited price fluctuations in the last couple of weeks despite the overall positive momentum in the cryptocurrency market.
Despite the stagnant price of ETH, there has been an increase in selling activity recently, indicating a cautious short-term perspective for Ethereum in the upcoming days.
Investors have been observed cashing out their profits from Ethereum, with over 225,779 ETH tokens being sold in the past 48 hours, equating to approximately $576 million. Such a high selling volume suggests a lack of confidence among investors, possibly opting for profit security rather than expecting further price increases, indicating a tendency towards risk aversion in the short run.
There are bearish signals surrounding Ethereum as indicated by technical analysis. The Moving Average Convergence Divergence (MACD) has displayed a bearish crossover after a prolonged bullish phase of almost seven weeks. This change often precedes a price decline or heightened volatility.
The price of Ethereum hovers around $2,553, supported by a crucial level at $2,500. If bearish trends persist, Ethereum may drop below $2,500 and target the subsequent support level at $2,344. On the other hand, a resurgence in buying interest could lead to ETH consolidating between $2,500 and the resistance level of $2,654 for a certain period.
To alter the short-term bearish outlook, Ethereum needs to surpass the resistance level near $2,654. A sustained breakthrough beyond this point could propel the price towards $2,814, reigniting investor confidence and paving the way for further price gains.