๐ Why is Ethereum (ETH) dropping today?
Ethereum is currently trading around $4,268, showing a slight pullback after its recent rally. But why is ETH facing downward pressure today? ๐ค
๐น Profit-taking & overbought signals โ After the strong rally, many traders are taking profits. Technical indicators like RSI showed Ethereum was overbought, leading to a natural correction.
๐น Resistance near $4,500 โ ETH is struggling to break above this psychological level, creating short-term selling pressure.
๐น Low liquidity on exchanges โ While long-term holders keep accumulating, the reduced ETH supply on exchanges makes the market more volatile in the short term.
๐น General market sentiment โ Crypto markets are consolidating after strong gains, and ETH is no exception.
โก Bottom line:
Todayโs dip looks more like a healthy correction than a trend reversal. If Ethereum can hold above $4,100โ$4,200, the bullish momentum may continue in the medium term.
๐ Do you see this as a dip-buying opportunity, or are you waiting for a deeper correction?
