Despite the positive fundamentals of Ethereum, technical indicators show warning signs, as the price failed to maintain the $2,600 level and is currently around $2,520.
On the weekly chart, the 50-week moving average is about to fall below the 100-week counterpart - known as a 'Death Cross' - which could lead to a decline of up to 35%, dropping the price towards the support level of $1,750.
Ethereum price chart – source: TradingViewAdditional warning indicators:
Liquidation of long speculative positions exceeding $56.8 million within 24 hours.
The Relative Strength Index (RSI) and Stochastic indicators show weakness in momentum.
Analyst Weslad points to a potential corrective pattern of type ABCDE (Elliott Wave)
Despite the overall optimism, some traders remain skeptical as evidenced by Ethereum's failure to break the $3,000 barrier at a time when Bitcoin is nearing unprecedented levels. The situation for Ethereum may worsen if macroeconomic conditions encourage risk aversion, which could increase selling pressure from small traders and leveraged speculators.
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