Ethereum Price Dips Below $3700: Sellers Eyeing for $3K Mark?

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  • Ethereum price has gained 178% since 2023 but has declined by 12% this month.
  • The trading volume has increased by 200% in the past 2 days.

The Ethereum price has witnessed short-term selling pressure and has slipped below the 20-day EMA. On a wider time frame, the ETH price has performed positively and has gained 178% since 2023. In May, the ETH price exceeded the crucial level but grabbed liquidity and displayed selling pressure.

The Ethereum crypto price has sustained below the $3700 mark, showing a bearish forecast. At the beginning of 2024, the ETH price formed a base at the $2100 hurdle and witnessed extraordinary gain.

Turning to the technical indicators, the Ethereum crypto has slipped below the 20-day EMA and is heading for the 200-day EMA. RSI is 38 and struggling to exceed the RSI-based moving average, showcasing negative momentum.

Volume Has Surged by 200%; What’s Next?

According to the given data, the trading volume has increased by more than 200% in a day. However, the volume has declined since March, and the ETH price has reacted accordingly. 

Price vs. Social Dominance

The data demonstrates that engagement on social media, like Instagram, X, Telegram, etc., with Ethereum cryptocurrency increased in mid-May. The rise in social dominance has pushed the price up by 30% in a week. If social dominance increases, it may impact the price positively.

Ethereum Price Technical Analysis Over 1-D Timeframe

At press time, the Ethereum price traded at $3363.25, almost remaining neutral in the past 24 hours. The market capitalization is $404 Billion, and its current dominance is 17.94%. The 24-hour trading volume is $19.93 Billion and ranks 3rd in volume.

The buyers at the breakout level of $3700 have been trapped, and sellers have shown dominance. The price is falling, and there is no resistance or support zone. It is so high that the ETH price may witness continuous selling pressure.

Alternatively, buying momentum can be expected if the ETH crypto price defends the 200-day EMA and forms a reversal candlestick. If the bullish momentum is supported by the trading volume, buying momentum in the long term can be experienced.

Let’s Discuss the Performance

Ethereum

Ethereum price has gained 77.59% in a year and 47.76% YTD. But bears have dominated at the smaller time frame with a loss of 10.08% in the last week and 5.98% in the past 3 months.

Ultimately, the Ethereum price has been bullish in a broader time frame, but bears seem strong in the short term. The price has declined below the crucial level of $3700 and is showing weakness. 

The price has dropped below the 20-day EMA and approaching the 200-day EMA. Profit booking on a larger scale can be expected if the price slips below the strong support level of $2800.

Technical Levels

Based on the chart structure, the Ethereum crypto price is expected to face resistance from the $3700 and $4000 levels. If it triggers bearish momentum, it may take support at the $2800 and $2200 mark.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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