For the price of Bitcoin, a decline of a little more than 10% is quite normal when compared to other cycles. But BTC will correct after reaching $108,000. For its part, Ethereum is stuck around $4,000 and the price is now heading towards $3,000. Will ETH be able to bounce back? Let’s take stock of the ETH situation in today’s bulletin!
Ethereum price drops 10% in 24 hours
The fall in the price of Bitcoin has serious implications for altcoinsand especially on the price of Ethereum. Indeed, ETH 10% drop in 24 hoursand 15% in one week :
Ethereum performance against different pairs. Source: Coincheckup
You have to go back a month find green (+6%). And compared to Bitcoin Ethereum is very fragile. ETH/BTC pair down more than 4% in 24 hours az 11% per week.
Demand for ETFs is high even though ETH is still being rejected around $4,000
The price of Ethereum is very far from displaying bullish performancesbut it seems that demand is present for spot ETFs. ETFs took a hiatus between the July launch and October, but investors have been present since the beginning of November :
ETFs scored yesterday the first red day after twenty days of capital inflows. On December 5, ETFs even recorded admissions for more than 400 million dollars. The demand for these investment products is very present, but this is not yet reflected in the price.
ETH price regains support at $3,250
ETH was done again reject at the psychological round number level of $4,000. At this time, the course cannot pass this level. Buyers on $3,500and the rate is back to support of $3,250 :
If the decline continues, the price could return to the level support of $3,100or even around support of $2,900. Despite everything, the returnd is possible for $3,250and in this case the course could join the resistance at $3,500. RSI comes from confirm bearish divergenceand has dropped below the bullish trend line. THE momentum is weakening.
Ethereum saw a significant rejection around $4,000 in March and continues to stagnate. And even with relatively high demand for ETFs, ETH remains fragile and well below its ATH seen in 2021. As market tumbles, SEC validates Bitcoin-Ethereum hybrid ETF.