The general crypto market has experienced a strong downward movement. Ethereum is no exception to this bearish development since the digital asset has experienced a pullback below key support levels. With waning market performances hindering investors’ sentiment toward ETH, the altcoin is likely to undergo an extended pullback in the upcoming days.
Bearish Forces Weigh On Ethereum’s Price
Recent price action shows that Ethereum could be gearing up for a correction phase as heightened selling pressure begins to weigh on the asset. Informative platform IC News predicted after examining investors’ behavior and price performances in the 1-day time frame.
Related Reading: Ethereum’s Price Forms Bullish Pattern On The Weekly Chart, A Rally To Higher Levels Ahead
IC News report indicates that bullish momentum is slowing down and investors are considering profit-taking in order to minimize losses. Thus ETH might experience further decline, hitting key support levels if the sell-off keeps increasing.
According to the platform, ETH saw strong selling pressure at the $3,500 price level, indicating a lack of purchasing power from investors. While the platform considers this development a false breakout, it raises the possibility of a rejection shortly.
Considering the price movements, IC News believes that the altcoin will probably see a bullish trend if only it breaks above key thresholds and eventually regains the $3,500 mark. On the other hand, a rejection can cause more volatility and a price decline.
As ETH price fluctuates, investors continue to navigate the development to determine whether the asset can recover its uptrend or if a broader market correction will occur.
However, certain indications cited on ETH’s chart show that it might resume its upward movement to crucial resistance zones close to its all-time high. Titan of Crypto, a technical expert and trader predicts a notable rally for Ethereum as it prepares for a key breakout.
The expert identified a Falling Wedge pattern on the 1-day chart, in which a breakout from the pattern is expected to cause renewed momentum and trigger an upswing for Ethereum. “As anticipated, the bullish divergence kicked in, and ETH’s falling wedge has now played out,” he stated.
Looking at the chart, Titan of Crypto expects the altcoin to surge as high as $4,500 in the upcoming weeks once a breakout happens. Such a rally may attract new and old investors, which will spark an additional uptrend toward a new all-time high.
ETH’s Underperformance Linked To Reduced Whale Transactions
While major altcoins have performed remarkably this cycle, ETH continues to fail to initiate a major price rally. ETH’s underperformance could be linked to sluggish large transaction volumes compared to previous bull cycles.
Related Reading: Ethereum Large Transaction Volumes Explodes 206% In 24 Hours, Catalyst For Rally To $4,000?
Historically, a surge in large transaction volume has preceded significant price growth as seen in the 2017 and 2021 market cycles. Meanwhile, Ethereum constantly sees small spikes in whale activity in this cycle, which are unable to signal a parabolic move. For ETH to witness a strong rebound toward key resistance levels, there should be a rise in large transaction volume.
Featured image from Unsplash, chart from Tradingview.com
