Key Takeaways
- Ether has declined by 6% in the last 24 hours, with its current trading price around $3,500.
- There is a potential for the cryptocurrency to retest the daily support level at $3,350 in the near future.
Ether Experiences a Price Drop to $3,500
Ether (ETH), the second-largest cryptocurrency by market capitalization, has seen a 6% decrease in value over the past 24 hours, now trading at approximately $3,502 per coin. This downward trend occurs amidst a broader decline in the cryptocurrency market.
The negative performance of Ether persists despite a recent announcement from Ethereum treasury firm BitMine Immersion (BMNR). On Monday, BitMine revealed that it had added 82,353 ETH to its balance sheet, increasing its total holdings to 3.39 million ETH, which represents 2.8% of ETH’s circulating supply.
Commenting on the acquisition, BitMine Chairman Thomas Lee noted: Ethereum fundamentals continue to strengthen at an accelerating pace, with stablecoin supply on ETH rising >15% in the past 8 weeks and application [revenue] reaching an all-time high. Most of the time, price leads fundamentals, but at times fundamentals drive ahead, and price converges higher.
BitMine has stated its intention to acquire 5% of ETH’s total circulation. Currently, it leads in Ether holdings, surpassing SharpLink Gaming (SBET) with 859,395 ETH and The Ether Machine (ETHM) with 496,712 ETH.
Potential Retest of $3,350 Support for Ether
The ETH/USD 4-hour chart indicates a bearish trend, reflecting Ether’s underperformance in recent weeks. Ethereum experienced liquidations totaling $292.6 million in the last 24 hours, with long liquidations accounting for $269.2 million as traders faced significant losses.
Technical indicators currently signal bearish sentiment, suggesting continued selling pressure. The Relative Strength Index (RSI) on the daily chart stands at 43, below the neutral 50, indicating a bearish bias. Furthermore, the Moving Average Convergence Divergence (MACD) lines crossed into negative territory over the weekend, flashing selling signals for traders.
If the selling pressure continues, Ether could retest the daily support level of $3,350, a level previously seen on August 2nd. Conversely, a recovery in market control by bulls could see ETH climb back above $3,700, with a potential target of the major resistance level at $3,900
Expert Summary
Ether’s price has seen a significant dip, falling below the $3,500 mark amid broader market downturns. While on-chain developments, such as increased holdings by treasury firms and strong fundamentals, suggest underlying strength, technical indicators point towards potential further declines, with $3,350 identified as a key support level.