Ethereum Price Risks Dropping Below $3,000 as Demand Declines
Leading altcoin Ethereum went against the overall market trend, losing 2% in price over the past 24 hours. This comes amid continued decline in demand for the coin.
As buying pressure subsides, ETH is at risk of falling below $3,000 soon. This analysis has details.
Ethereum demand loses momentum
An assessment of the ETH momentum indicator on the ETH/USD one-day chart shows that demand for the altcoin is waning. For example, Its Relative Strength Index (RSI) is in a downtrend and below the 50 neutral line. As of this writing, its value is 42.61.
asset relative strength index Measures market conditions for overbought and oversold. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought, while values below 30 indicate that the asset is oversold.
ETH’s RSI signal signals waning momentum and suggests the asset may be losing buying interest, which could lead to further price declines.
Additionally, as of this writing, the coin’s Chaikin Fund Flow (CMF) is about to drop below the zero line, Confirming weak demand for ETH.
The CMF indicator measures the amount of money flowing into or out of an asset during a specific period. When the CMF is about to fall below the zero line, selling pressure is increasing, indicating underlying bearish momentum and a possible price decline.
ETH Price Prediction: Drop to $2,811 or rebound to $3,476?
As of press time, ETH is trading at $3,175, below the resistance level of $3,249. As buying pressure subsides, the coin’s price may drop below $3,000 in the short term, trading as low as $2,811.
However, if market sentiment improves, It could push up the price of ETH above $3,249 to $3,476.
Disclaimer
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