Ethereum

Reserve Dollar

Resistance

when

Reserve

<ul>
  
 <li>Ethereum faces bearish pressure with a recent Death Cross signaling potential price drops.</li>   
 <li>Resistance at Fibonacci levels and a wedge breakdown reinforce the bearish trend.</li>   
 <li>Increasing ETH reserves on exchanges suggest a distribution phase, impacting demand and prices.</li> 
</ul>   
Ethereum's recent price movements have left many traders uneasy. Over the past few weeks, Ethereum (ETH) has shown a <a href="https://cryptonewsland.com/centralized-layer-2-solutions-threaten-ethereums-future-as-price-declines/" target="_blank" rel="noreferrer noopener">strong bearish trend</a>.&nbsp;   
Recently, the price pulled back to the lower edge of a multi-month wedge pattern, setting the stage for a notable drop. Compounding the issue, the formation of a "Death Cross" has deepened the bearish sentiment.   
<h2 class="wp-block-heading" id="h-bearish-signals-on-the-charts">Bearish Signals on the Charts&nbsp;</h2>   
<figure class="wp-block-image size-large">
 <img src="https://cryptonewsland.com/wp-content/uploads/2024/09/Screenshot_20240903-145358-1024x461.png" alt="" class="wp-image-179693">
</figure>   
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source: Trading View&nbsp;   
<a href="https://www.investopedia.com/terms/d/deathcross.asp" target="_blank" rel="noreferrer noopener nofollow">The "Death Cross"</a> occurs when a short-term moving average falls below a long-term moving average. For Ethereum, this happened when the 100-day MA crossed below the 200-day MA.&nbsp;   
This pattern is typically a bearish signal and often precedes further declines. As a result, <a href="https://cryptonewsland.com/ethereum-faces-sell-off-fears-as-whale-moves-90k-eth-to-binance/" target="_blank" rel="noreferrer noopener">panic selling has increased</a>, pushing ETH closer to the $2.1K support level in the near term.   
On the 4-hour chart, Ethereum hit resistance between the 0.5 Fibonacci level ($2.6K) and the 0.618 Fibonacci level ($2.7K). This resistance led to a sharp decline, breaking through the lower boundary of an ascending wedge.&nbsp;   
This breakdown reinforces the bearish trend, with sellers pushing prices down. Additionally, ETH attempted a pullback to the broken wedge recently. This suggests that the bearish momentum may continue.   
Ethereum's immediate support is at $2.1K. This level might attract buying interest and offer temporary relief from the selling pressure.&nbsp;   
However, until this support level is tested, the prevailing bearish trend is likely to persist. The $2.1K level is a critical target for short-term traders.   
<h2 class="wp-block-heading" id="h-onchain-analysis-nbsp">Onchain Analysis&nbsp;</h2>   
With Ethereum's recent downtrend, there’s debate over whether the market is in an accumulation or distribution phase. The <a href="https://cryptoquant.com/asset/eth/chart/exchange-flows/exchange-reserve" target="_blank" rel="noreferrer noopener nofollow">Ethereum Exchange Reserve metric</a>, which tracks ETH held on exchanges, provides key insights.&nbsp;   
An increase in coins on exchanges typically signals distribution, as these assets are often sold quickly. From June to August, the metric trended upwards, indicating a distribution phase that added to the bearish market.&nbsp;   
Following the recent death cross, the Exchange Reserve metric is rising sharply again, suggesting another distribution phase may be underway. As Ethereum reserves on exchanges increase, the chance of decreased demand and further price declines also rises. 
The post <a href="https://cryptonewsland.com/bearish-ethereum-and-2-1k-support-focus/">Bearish Ethereum: Death Cross Impacts and $2.1K Support Focus</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.

Bearish Ethereum: Death Cross Impacts and $2.1K Support Focus

Table of Contents

Crypto News Land

Other articles published on Sep 3, 2024

Bitcoin falls alongside stocks following Bank of Japan rate hike comments

Donald Trump will let Elon Musk audit US federal agencies

Ripple Unlocks Another Billion XRP: A Strategic Crossroads for the Future of the Token

Telegram CEO Pavel Durov Released on €5M Bail Amid Serious Charges

How much Bitcoin does the average whale hold?

Bitfarms sells 60% of August Bitcoin production amid rising network difficulty

Join our free newsletter for daily crypto updates!