Recent technical analysis points to increasing bearish momentum for Ethereum (ETH), raising concerns about a potential drop below the key $3,000 psychological barrier.
Ethereum’s Holder Accumulation Ratio, a metric gauging buying conviction, has fallen to a two-month low of 27.57%. This decline signals a significant reduction in new buying activity and suggests diminishing investor confidence, hindering ETH’s ability to overcome significant overhead resistance.
Compounding the bearish outlook, the Elder-Ray Index remains firmly negative at -342.73, displaying expanding red histogram bars. This indicator confirms dominant sell-side pressure in the market as bearish momentum appears to strengthen.
Technically, ETH faces solid resistance near $3,524. The lack of significant buying interest and prevalent selling pressure, as evidenced by the declining accumulation ratio and bearish Elder-Ray signal, are preventing upward price movement. Critical support levels lie at $3,067 and $2,745. Sustained bearish pressure could see these levels tested.
For any bullish reversal to materialize and push the price higher, renewed buying interest needs to emerge. A decisive break above the $3,524 resistance would be a crucial first step, potentially clearing a path towards the $3,859 level.