In a turbulent day for the crypto market, Ethereum (ETH) has experienced a notable 4.57% decline, with its price now hovering around $2,399. This dip follows the overall bearish trend in the market, with Bitcoin also suffering a 4% drop to stabilize around $56,566. Ethereum’s market cap dropped to $288.78 billion, securing its position as the second-largest cryptocurrency.
Increased Trading Volume
Despite the price dip, Ethereum’s trading volume surged by 69.93%, reaching $16.22 billion, according to CoinMarketCap. This increased activity often signals that significant price movements could be on the horizon, though the direction remains uncertain.
ETH/USD 1-Day Chart (Source: CoinMarketCap)
Double-Bottom Pattern: A Reversal Sign?
Ethereum’s recent price action has formed a double-bottom pattern, a technical indicator often associated with potential trend reversals. This pattern, identified at the $2,310 support level, suggests that the selling pressure may be waning, with buyers stepping in to defend the price.
ETH/USD 1-Day Chart (Source: TradingView)
However, caution is warranted. On-chain data indicates that bearish sentiment still dominates Ethereum’s market. CoinGlass reports that the open interest (OI)-weighted funding rate has dipped by 0.0024% in the last 24 hours, reflecting ongoing bearish sentiment. Additionally, the long/short indicator shows more short positions than long, adding to the downward pressure.
What’s Next for Ethereum?
Should the double-bottom pattern hold, analysts predict a potential rise to $2,592, with a possible retest of the $2,800 resistance level if bullish momentum continues.
ETH OI-Weighted Funding Rate (Source: CoinGlass)
However, if bearish pressure prevails and Ethereum breaks below the current support, the price could dip further, possibly reaching $2,132 or even the $2,000 mark, last seen in August. Such a decline would indicate continued bearish control over the market, with traders likely offloading positions to avoid deeper losses.
