Ethereum (ETH) has been under heavy selling pressure since hitting a high of $3,746 last week. The sharp decline sent the altcoin to a local low of $3,157, and despite some minor gains recently, it is still trending lower.
Currently, Ethereum ETH is trading at $3,196, down 2.17% daily, 12.67% weekly, and 18.61% over the past month.
Selling pressure control
The main reason for this decline is due to increasing selling pressure, especially on the Binance platform, where data has shown that sell orders have continued to outpace buy orders since November 2024.
Selling reached levels not seen since August 2023, reflecting the pessimism that has gripped the market. Despite attempts by buyers to take control in December, sellers returned in force, reinforcing the downtrend.
Technical indicators indicate a continued decline.
• CMF: Stable at -0.08, indicating sellers dominance.
• RSI: At 38, close to the oversold zone, reflecting continued selling pressure.
• Ethereum inflow to exchanges: rose from -50.77k to 103.77k, indicating a potential sell-off.
Price Forecast: Critical Support and Resistance Levels
If the current selling pressure continues, Ethereum is expected to drop to $3,030, with a potential break of the $3,000 barrier to find support at $2,810.
However, if the downtrend reverses and reversal signals appear, the coin may reclaim the resistance level at $3,300.
Investors are watching the market cautiously, as market sentiment remains bearish.
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