The Ethereum (ETH) market is currently experiencing a period of consolidation, with signs pointing towards a bearish sentiment among investors. Despite Ethereum's recent rebound from lower price points, the enthusiasm for pushing past the $4,000 mark appears dampened by a prevalent inclination among investors to secure profits. This trend is evidenced by the significant amount of Ethereum that has been transferred into exchange wallets, suggesting a preparedness to sell.
The recent price actions have flipped the 50% Fibonacci Retracement level into a support zone, sparking a cautious optimism among holders. However, the surge in selling pressure, highlighted by over $1.36 billion worth of ETH sold in just ten days, casts a shadow over the potential for further price rallies.
Technical analysis suggests Ethereum may find temporary support at the $3,336 level, aligning with the 100-day Exponential Moving Average (EMA). A failure to hold this level could see ETH prices descending towards $3,031, a critical support floor. Conversely, should Ethereum manage to sustain its momentum and breach the 61.8% Fibonacci Retracement level, it could signal a negation of the bearish outlook and pave the way for further gains.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.