Ethereum Hovers Around 3.4K, Signals Buy Zone

Ethereum, the second-largest cryptocurrency by market cap, has seen significant price movements, as revealed in a recent analysis by crypto analyst VeLLa Crypto on X. The analysis highlights critical price points and suggests strategic trading positions.

At press time, Ethereum’s price hovers between $3,419 and $3,363, a key buying range. This area is considered a pivot point for potential upward movements, aiming for a triple-return setup. According to the analysis, Ethereum demonstrates a resilient trend, underscored by the fluctuating yet strategic price levels.

A breach above this $​​3,900.8 could indicate strong bullish momentum. Conversely, the support at $3,516.2 holds significant weight, with further support at $3,221.3 acting as a critical threshold. Falling below this lower support might trigger a downward trajectory for Ethereum’s price.

Over the past 24 hours, Ethereum (ETH) has experienced a significant drop in value, shedding 7.81% to land at a current price of $3,171.13. This downturn is reflected across several metrics, with Ethereum’s market capitalization falling by 7.80% to approximately $381.25 billion, marking a notable decline in investor sentiment.

The trading volume for Ethereum has also decreased, totaling about $21 billion in the last day, down by 8%. This high volume relative to the market cap, with a ratio of 6%, suggests a heightened level of trading activity that could indicate investor reactions to recent market shifts or news developments.

Coinciding with this price decline, the crypto community has reacted to news that Spot Ethereum ETFs have been approved to start, a development that typically would be expected to bolster market sentiment. Despite this, the impact has not reversed the negative trend observed in the Ethereum market over the last day.

The daily technical indicators for Ethereum (ETH) show a notable trend. The Relative Strength Index (RSI) stands at 53.66, which is relatively neutral but leans towards the lower end. This suggests that Ethereum is neither overbought nor oversold at the moment. 

The Moving Average Convergence Divergence (MACD) shows a bearish crossover, with the MACD line (blue) trending below the signal line (orange). This suggests that the market may continue to see downward pressure in the short term. The histogram also supports this view, as it has decreased and shows growing bearish momentum.