Ethereum (ETH) Dives 5%, Is a Deeper Bearish Slide Coming?

• Ethereum is currently hovering at around the $2.4K mark.
• The market has seen $284.94 million worth of Ethereum liquidated.

The crypto market cap’s 2.01% slip to the $3.22 trillion mark has pushed the assets into a mixed sentiment. All the major asset prices are charted in red. Assets like Bitcoin (BTC) and Ethereum (ETH) have chosen to trade on the downside. The largest altcoin, Ethereum, has suddenly plummeted by over 5.65% and lost its recent gains.

ETH bears could likely build a negative trend line, and further downside correction brings in more losses. A bullish shift might occur only after the altcoin climbs above the $2.6K mark.

In the early hours, the bulls in command have pushed the ETH price to its daily high at the $2,640.60 range. Later, it steeply fell to the bottom level of $2,387.61 as the bears reclaimed the momentum. Ethereum is currently traded at around $2,462.74, with a market cap of $297 billion.

Notably, the daily trading volume has increased by over 66.23%, reaching $28.13 billion. As per Coinglass data, the market has witnessed a liquidation of $284.94 million worth of Ethereum.

What is Next for Ethereum?

The ETH/USDT trading pair’s Moving Average Convergence Divergence (MACD) line and signal line have crossed below the zero line. This crossover typically indicates the negative momentum in the market. It may drive the price to stay under the bearish pressure. Moreover, the Chaikin Money Flow (CMF) indicator value found at -0.14 suggests moderate selling pressure, and the money is flowing out rather than in.

ETH chart (Source: TradingView)

If ETH’s active downtrend stays, the price could fall to the nearby support at the $2,425 range. An extended correction on the downside might likely trigger the death cross to unfold. The potential bears of Ethereum push the price to steadily plunge toward $2,407 or even lower.

On the upside, assuming the asset’s current momentum shifted gear, entering the bullish zone, ETH could test the key resistance at the level of $2,480. A potent upside correction might invite the golden cross to support the price movement, sending Ethereum to the $2.5K threshold.

In addition, ETH’s Bull Bear Power (BBP) value staying at -164.43 signals a strong bearish momentum in the market, pushing prices below. The downturn may continue until a reversal emerges. The asset’s daily relative strength index (RSI) of 36.02 points to the approaching oversold zone, with the potential of continued weakness.

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