As the token linked to the former U.S. president surged by 30% in two weeks, Ethereum displays concerning signs. With technical rejection, growing selling pressure, and whale movements, the $2,200 level is at risk. Will there be another correction? Here are the key signals to watch out for.
Ethereum experienced a significant drop after reaching $2.7K, raising concerns in the market. What are the key price levels to watch for this cryptocurrency?
After hitting a peak at $2.7K, Ethereum faced a strong rejection. The crypto dropped to $2,476, a 3.05% decrease in 24 hours. This correction was driven by increased selling pressure in the market.
Source: CryptoQuant
The buyer-seller ratio in the spot market significantly dropped, indicating seller dominance. Data shows that 113.1K ETH were sold compared to only 90K bought. This selling momentum intensified among both small holders and whales. Indeed, large investors sold more ETH than they bought, as the whale net flow metric indicates.
Ethereum is currently near a breakout zone while the bearish momentum remains strong. If selling pressure continues, a deeper correction could be looming, with $2.2K as a key support level.
Source: Coinalyze
To avoid a drop below $2K, it will be crucial for the price to stay above $2.2K. However, a slowdown in selling could allow a return to $2.7K and even $3K.
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