Ethereum price has struggled to maintain its bullish momentum and has fallen below $4,000 amid increasing selling pressure.
summary
- Ethereum price has retreated below $4,000, down 5% in 24 hours and 15.5% over the past week.
- The RSI is approaching oversold conditions at 43.60, while the MACD is showing a negative divergence, indicating that the bearish momentum continues.
- Whales were mixed, with some investors such as Bitmine buying the dip, and BlackRock selling $310.13 million worth of ETH.
- Support is at $4,000 and resistance is at $4,263. A breakout above could push ETH closer to $4,500 or higher.
Ethereum suffered from waning investor interest and negative market sentiment, falling below the $4,000 milestone and into the $3,900 area. At the time of writing, ETH is trading at $3,971, according to crypto.news data.
The second-largest cryptocurrency is down around 5% on the daily chart and 15.5% on the week, indicating continued bearish pressure. The recent pullback occurred after the bulls attempted to break out of the $4,263 resistance level. However, selling pressure at this price point triggered a correction, pushing Ethereum (ETH) down to its current price.
ETH price chart |Source: crypto.news
Both the RSI and MACD indicators are showing signs of weakening momentum. The RSI is currently nearing the oversold zone at 43.60, which could indicate that selling pressure is nearing its peak. However, the RSI is still in neutral territory, so further declines remain possible.
You may also like: Solana price has regained $200 in a whale-led rebound, but will the recovery continue?
The MACD also shows a negative divergence, with the short-term momentum line (blue) sitting well below the long-term momentum line (orange), indicating that the downtrend may continue if momentum does not change soon.
Falling Ethereum price affects whale activity
As the Ethereum price continues its downward trend, there is a mix of buying and selling from whale investors. On October 13th, the Ethereum Spot ETF recorded net outflows of $428.52 million, marking the third consecutive day of outflows.
Notably, BlackRock’s ETHA fund accounted for $310.13 million of the outflow. Nevertheless, some investors, like Tom Lee’s Bitmine, have taken advantage of this decline and amassed $834 million worth of ETH over the past week.
Ethereum price has support near $4,000, which could act as a psychological support zone. Below this level, Ethereum may test lower levels, potentially around $3,965. Upside resistance remains at $4,263. If ETH can break through this level, a rally to $4,500 and even $4,750 could continue.
You may also like: BitMine strengthens Ethereum treasury with $104 million as price maintains $4,300
