TLDR
- Ethereum trades between $4,291-$4,338, down 3.9-4.2% in 24 hours
- Critical support at $4,200 being tested after failed $4,500 breakout
- Over 420,000 ETH withdrawn from exchanges shows accumulation
- RSI at 41 suggests more downside possible toward $3,700-$3,800
- Long-term targets remain bullish at $10,000 despite short-term weakness
Ethereum price has declined 3.9% to 4.2% over the past 24 hours, trading between $4,291 and $4,338 across major exchanges. The second-largest cryptocurrency faces critical technical levels that could determine its next major move.
The recent price action follows a week of consolidation below the $4,500 resistance level. This key zone has repeatedly rejected Ethereum’s advance, with bulls failing to establish momentum above this threshold.
Support has held above $4,200 so far, creating a battleground between buyers and sellers. This level represents a crucial floor that must hold to prevent deeper corrections.
The broader cryptocurrency market has experienced similar weakness, with Bitcoin also declining during the same period. Liquidations exceeded $1.7 billion across altcoin markets, creating additional downward pressure on Ethereum.
Macroeconomic factors continue to weigh on crypto markets. Persistent inflation concerns and potential Federal Reserve rate hikes have created caution among investors.
Crypto ETF outflows in the United States have also contributed to selling pressure. These institutional flows often signal broader market sentiment shifts.
On-Chain Metrics Show Accumulation Pattern
Despite the price decline, on-chain data reveals a different story. More than 420,000 ETH has been withdrawn from exchanges this week, indicating long-term holder accumulation.
Exchange outflows typically suggest investors are moving coins to cold storage for extended holding periods. This supply reduction could support higher prices over time.
The contrast between falling prices and increasing accumulation creates mixed signals. Short-term traders remain cautious while long-term holders appear to be buying weakness.
Whale activity has also increased during the recent decline. Large holders continue to accumulate Ethereum at these lower price levels.
Technical Analysis Points to Key Levels
Ethereum currently trades below its 20-day exponential moving average but remains above the 200-day EMA. This positioning creates a neutral to bearish short-term outlook.
The Relative Strength Index has declined to 41, suggesting bearish momentum may continue. Values below 40 often indicate oversold conditions that can lead to bounces.
Key resistance now sits at $4,450-$4,510, forming a congestion zone that has capped recent rallies. A break above this area would signal renewed bullish momentum.
Support levels are established at $4,200, with deeper support around $3,800-$4,000. Technical analysts warn that a break below $4,200 could trigger selling toward the $3,700-$3,800 range.
Ethereum Price Prediction
Short-term price predictions for Ethereum remain mixed. The immediate focus centers on whether the $4,200 support level can hold against continued selling pressure.
A break below this key support could trigger a correction toward $3,700-$3,800, matching previous cycle consolidation patterns. However, the strong accumulation pattern suggests any deeper decline may be temporary.
Long-term forecasts remain constructive despite current weakness. Analysts maintain targets of $10,000 for Ethereum later in the current market cycle.
The next 24-48 hours will likely determine Ethereum’s near-term direction. Macroeconomic stability and ETF flow improvements could help stabilize prices around current levels.
Current trading data shows Ethereum holding above $4,200 support with continued exchange outflows supporting the accumulation thesis.
