The recent fluctuations in the crypto market have left many investors on edge, with the DeepSeek shockwaves settling but the selling pressure from the tariff war still looming. Despite a brief recovery, the crypto markets have experienced a notable pullback, erasing some of the gains from the previous trading day. Ethereum, in particular, has been under scrutiny as it struggles to maintain its position in the market.
Since the Bitcoin price surged above the consolidation in November, Ethereum has failed to keep up with the rally. This has resulted in the price hovering around $4000 without making significant gains. While memecoins and AI projects have flourished, Ethereum has lagged behind during this bull run.
There are several reasons why Ethereum has been struggling to keep up with the competition:
– Strong competition from Solana and Solana-based memecoins, which have attracted a significant amount of trading volume.
– Institutional investors have shown a preference for Bitcoin over Ethereum, with the Grayscale Trust’s ETHE facing outflows and high fees.
– Regulatory uncertainty surrounding Ethereum has also impacted its performance.
– Bitcoin’s range-bound movement has had a ripple effect on Ethereum and other altcoins.
– The lack of significant upgrades or positive news has also contributed to Ethereum’s stagnant performance.
Currently, Ethereum has dipped below $2800 from its recent highs near $2900 and is approaching a crucial support level around $2700. It is essential for the price to hold above this level to prevent a deeper correction. Failure to do so could trigger over $1 billion in leveraged long liquidations, leading to a sharp decline in price.
Despite the bearish pressure, Ethereum remains in a bullish range, trading within an ascending triangle on the monthly chart with the 200-day moving average acting as support. However, technical indicators are turning bearish, with the possibility of a bearish crossover on the +Di and -Di lines as well as the MACD.
The next few days will be crucial for Ethereum’s price rally, as breaking above $3000 could signal a bullish trend, while failure to do so may result in a consolidation between $1900 and $2200. Investors should closely monitor these key levels to make informed decisions about their Ethereum holdings.