Ether Falls Below $3,800 Amid Concerns of Further Downside
Ethereum Price Struggles
- Ethereum's price fell below the $3,800 support, currently trading near $3,719 after a 7% decline.
- Analysts predict further downside with potential support at $3,600; recovery requires reclaiming $4,000.
- Wintermute moved large amounts of BTC, ETH, and SOL to exchanges, historically causing market downturns.
Institutional Moves and Technical Analysis
- Spot ETH ETFs saw outflows of $80 million this week, indicating cooling institutional sentiment.
- ETH is in a "neutral zone" between $3,800 and $4,100, testing a major support trendline since late 2022.
- Bulls need to break above $4,900–$5,000 or risk dropping to $3,400.
Market Indicators
- The weekly chart shows a rising wedge pattern, suggesting bearish potential with low volume.
- Bollinger Bands indicate tightening volatility, signaling an impending directional move.
- RSI shows weakening momentum but not oversold conditions; consolidation or dip to $3,600 possible before rebounding.
- MACD on the weekly chart has turned red, potentially leading to further declines.
Broader Market Impact