Ethereum Tops $2,000, But Correction May Follow
Key Takeaways
Ethereum (ETH) has surpassed the $2,000 mark, but some indicators suggest a possible correction. On-chain data and market analyses indicate that selling pressure could increase. The market remains volatile, and investors should closely monitor developments.
Ethereum Above $2,000 – How Sustainable Is the Rise?
ETH has gained 10% in recent days, surpassing the psychologically significant $2,000 mark. This increase occurred just before the latest meeting of the U.S. Federal Reserve (Fed). Although no unexpected monetary policy decisions were made, economic uncertainty persists. The Fed has signaled two rate cuts for the current year, which could be generally positive for the crypto market. However, ETH is currently showing weakness again, trading about 2.36% below its recent daily high.
On-Chain Data Indicates Increased Selling Pressure
An analysis of exchange net flows shows that more ETH has been transferred to exchanges in recent weeks. This suggests that investors may be looking to sell their holdings. Historically, such inflows have often been followed by price declines. Particularly notable were four large inflows on January 24, February 19, March 3, and March 14. After the first three events, the price dropped significantly within a few days. If this pattern repeats, ETH could come under pressure again.
Market Sentiment Remains Cautious
An analysis of the taker buy/sell ratio in the derivatives market shows that more sell orders than buy orders have been executed in recent weeks. Although this trend briefly reversed, the indicator quickly returned to negative territory. This suggests that bears are still in control and another price decline is possible.
Technical Analysis: Another Decline Possible
On the daily chart, ETH remains in a broader downtrend. The on-balance volume (OBV) indicator shows that buying volume is insufficient to initiate a sustainable trend reversal. While the relative strength index (RSI) signals a slight recovery, without significant buying momentum, the recent increase could merely be a short-term liquidity hunt. If the current pattern continues, ETH could fall to $1,750 or lower.
Our Assessment
While Ethereum has temporarily surpassed the $2,000 mark, several indicators point to a potential correction. Selling pressure on exchanges is increasing, and market sentiment remains cautious. Investors should closely monitor developments and prepare for possible pullbacks. Long-term investors may see declines as buying opportunities, while short-term traders should expect increased volatility.
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| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,964.72 |
| 24h % | -3.75 % |
| 7d % | 4.88 % |
| 30d % | -26.52 % |
| 60d % | -41.72 % |
| 1y % | -40.43 % |
| Market Cap | $236,945,192,787.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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