Ethereum Price Sends Mixed Signals As It Struggles Below Key Level
- Summary:
- Ethereum price has been under pressure in recent days and has underperformed peers like Solana and XRP. We discuss the odds of its upside.
Ethereum price traded upward on Friday, as it gained 1.8% to trade at $3,400 at the time of writing. The coin has struggled this year, and has risen by just 2% year-to-date. On the other hand, Bitcoin has risen by 13.4% since the year begun. That has put the coin under pressure as investors seek better-yielding coins.
The decline was also reflected in the DeFi market, where Ethereum chain’s Total Volume Locked (TVL) contracted by -4.94% in the last month, as reported by DeFiLlama. However, despite its struggles in the CEX and DEX markets, Ethereum has performed well in the ETF market. However, Ethereum’s momentum could be subdued if action stays below $3,500.
ETH Price Sends Mixed Signals
According to Coinglass, spot Ethereum ETF registered net positive inflows in five of the last six sessions. However, the figure printed out negative in Thursday’s session as investors reacted to Ethereum’s extended decline. The value of outflows stood at -$14.9 million in the session and a continuation of that momentum is likely to limit ETH price upside.
On the other hand, Open Interest data makes a case for Ethereum price upside. The value of Ethereum’s perpetual contracts rose by 5.58% in the last 24 hours to $15.9 billion. In addition, futures contracts were up by 2.2% to $613.6 million in the same time frame, as seen on the Coinanalyze data below.
Ethereum Price Prediction
The momentum on Ethereum price has seen it pivot at $3,350 and action above that level will favour the buyers to be in control. Immediate resistance will likely be at $3,395, but a stronger momentum will breach that barrier and potentially test $3,440.
Conversely, the momentum will switch to the downside if the ETHUSD goes below $3,350. With the sellers in control, the first support is likely to be at $3,320. Meanwhile, breaking below that level will invalidate the upside thesis. Furthermore, it could send the coin lower to test $3,280.
