Ethereum price hovered near the critical $3,300 support on Wednesday as the global cryptocurrency market declined by more than $300 billion. ETH has lost nearly 10% of its value in the last two days, underlining a strong downward momentum. The $3,300 mark has served as a support level for the last three weeks and a break below that level could exacerbate the downtrend.
ETH price’s Volume Weighted Moving Average stands at $3,440 as of this writing, and the coin will need to retest that level to find its upward momentum. The coin’s decline saw its ETF market record $86 million in outflows on Tuesday, the largest since late July. That shows a weak investor sentiment toward the coin’s upside potential.
Meanwhile, Ethereum’s traded volume was up by 87% in the 24 hours preceding this writing. Similarly, the value of its perpetual contracts was down by 6.47% according to data Coinanalyze data. That adds credence to the likelihood of an extended decline by the coin.
Also, Ethereum ecosystem registered a steep decline in its DeFi performance in that time frame. DeFiLlama reports that DeFi protocols on Ethereum chain saw their Total Value Locked (TVL) decline by over $5 billion to $65 billion as of this writing. That denotes reduced utility, which could increase the downward pressure on Ethereum price.
Ethereum price pivots at $3,437 and an extended resistance at that level will favour the sellers to be in control. If that happens, ETH price will likely find initial support at $3,333. However, a stronger downward momentum could break below that level and potentially test $3,260.
On the other hand, action above $3,437 will shift the momentum to the upside. With the buyers in control, ETH price will likely move higher and encounter the first resistance at $3,520. In addition, breaking above that level will invalidate the downside narrative. Also, extended control by the buyers could lift the coin higher to test $3,610.
This post was last modified on Jan 08, 2025, 14:51 GMT 14:51