Ethereum (ETH), the second-largest cryptocurrency, This pattern has been observed in previous significant events in the crypto market, including December 2017, April 2021, October 2021, and January 2024. Several factors are contributing to the current market pressures on Ethereum. The timing of the ETF launch coincided with the distribution of Bitcoin from Mt. Gox, adding extra selling pressure to the broader crypto market. Additionally, the US tech earnings season has started poorly, with major companies like Alphabet and Tesla experiencing sell-offs. This tech sector weakness is particularly relevant to Ethereum’s price, as the cryptocurrency has shown a strong correlation with tech stocks, especially Nvidia, which is down over 6%. Ethereum’s fundamentals, including new user growth and revenue, have reportedly stagnated. Before the ETF launch, some research firms highlighted Ethereum as overbought, suggesting it was primed for a short trade. This view has been supported by the subsequent 6% decline since the report. Looking at technical indicators, Ethereum may face further downward pressure in the short term. The current trading range suggests a possible decline toward the $3,203 support level before potentially rising to the $3,731 resistance level. Some analysts even speculate that Ethereum could test its crucial support level of $3,000 within the month if bearish trends continue. Despite the recent downturn, it’s worth noting that Ethereum is still up 72% over the past year and has outperformed the CoinDesk 20 index year-to-date. Ethereum is up 35% compared to the index’s 21.6% increase.
