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Ethereum price hovers at $2.4K amid selling pressure

Ethereum price hovers at $2.4K amid selling pressure

GrafaGrafa2024/11/05 14:00
By:Liezl Gambe

Ethereum (CRYPTO:ETH) recently faced significant selling activity at the $2.6K resistance, aligning with the 100-day moving average, which led to a price rejection and pushed ETH back toward the middle trendline support at $2.3K.

According to CryptoVizArt, this strong seller presence indicates a potential for continued downward pressure, with the possibility of a corrective consolidation in the near term.

On the daily chart, Ethereum remains in a narrow range between the middle support boundary of the channel and the 100-day moving average.

If ETH manages to break above this 100-day MA with a confirmed pullback, it could initiate an uptrend, aiming for targets at the 200-day MA around $2.9K and the channel’s upper boundary at $2.8K.

However, should selling pressure intensify and ETH slip below $2.3K, a retest of the $2.1K support may occur.

The 4-hour chart reveals further resistance within the 0.5 to 0.618 Fibonacci levels, a range between $2.6K and $2.8K.

This supply zone has proven a significant barrier to Ethereum’s upward momentum.

A bullish shift would require a clear breakout from this level.

Presently, ETH holds near the flag’s lower boundary at $2.4K.

If it breaks below this support, a liquidation cascade could push the price down toward $2.1K, though a consolidation around $2.4K appears more probable until further breakout signals emerge.

On-chain data shows concentrated liquidity below $2.4K, marking this level as a crucial threshold.

Binance Research points out that a breakdown here could trigger substantial sell-offs, driven by a potential long squeeze as buyers exit positions.

Conversely, strong buyer activity near $2.4K could stabilise ETH’s price and prevent further declines.

At the time of writing, the Ethereum (ETH) price was $2,397.96.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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