The price of Ethereum (ETH) is struggling to break above the $2,681 resistance level, which has been there for several weeks. Despite several attempts to break above this level, the cryptocurrency has been met with strong rejection, increasing short-term losses for investors.
A recent failed breakout attempt has resulted in sharp losses for investors, suggesting that Ethereum is having difficulty maintaining bullish momentum.
Ethereum fails to find support
The lack of sustained bullish momentum is causing concern among Ethereum investors. Over the past 24 hours, relative unrealized losses have increased by 14%, reflecting the market’s difficulty in making meaningful upside moves. Weak institutional inflows are further adding to these concerns, further worsening investor sentiment and putting Ethereum in a precarious position.
Ethereum holders are increasingly wary of potential downside risks as the overall market falters. ETH has shown strength in holding some support levels, but confidence has been undermined as it continues to struggle to break above $2,681. This has led to increased short-term losses and increased caution as market uncertainty persists.
Read more: How to invest in Ethereum ETFs?
Despite the overall market weakness, some Ethereum holders are optimistic . Chaikin Money Flow (CMF), a key technical indicator, recently hit a three-and-a-half-month high, returning to June levels. This shows that some accumulation is still taking place as the market struggles to break out of the bearish trend.
These mixed signals, combined with the CMF showing strength and the overall market sentiment weakening, could hold Ethereum up in the short term. Although the macro conditions remain bearish, the resilience shown by Ethereum holders suggests that a sudden decline is unlikely. However, unless a significant catalyst emerges, the upside is limited.
ETH Price Prediction: In a Tough Situation
The price of Ethereum is currently trading at $2,614 and is holding above the $2,546 support level. However, the $2,681 resistance level has remained an obstacle for the past five weeks. The price movement of Ethereum is limited by this level, which is keeping the cryptocurrency stagnant.
Given the current market conditions, Ethereum is likely to continue its sideways movement. The uncertainty and weak institutional interest across the cryptocurrency market suggest that ETH will hover between $2,681 and $2,546 in the near future. A decisive breakout above or below this range is uncertain.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
The bearish-neutral outlook for Ethereum can only be invalidated if the cryptocurrency turns $2,681 into a support floor. If Ethereum bounces off this level, it could generate enough momentum to head towards $2,930. However, if it fails to do so, Ethereum could fall again, as it has faced resistance multiple times before.
