With BTC falling to $45,700, Ethereum price needs to sustain above $3,150
Ethereum price has started another drop below the $3,400 support area and is currently trading around $3,203, down 6% in the last 24 hours.
ETH/USD 4-hour chart | Source: TradingView
Ethereum price could a steady increase as long as it is above the $3,150 support zone
Ethereum price failed to break through the key $3,500 resistance area. And as BTC dropped towards $45,000, ETH started to plummet below the $3,400 support zone, continuing towards the $3,200.
Currently, ETH is trading below the $3,320 and $3,250 support levels, possibly losing momentum and dropping below $3,200, but the bulls have been active near the critical $3,150 support area. A low was formed near $3,156, and the price is currently consolidating losses.
On-chain data shows positive sentiment in the market. ETH exchange outflow TX count implies user activeness across all exchanges. When the data goes far from the average, the market is likely to be overheated.
“For ETH, we only label exchange hot wallets, not each user wallets for deposit. Inflow TXs are flows from user wallets to hot wallets. Outflow is more accurate to see user activeness because hot wallets make user withdrawals”, Santiment stated.
The sentiment is positive, but if ETH fails to correct above the $3,250 and $3,320 resistance levels, it could start another decline. Initial support on the downside is near the $3,180 level.
The important thing now is that ETH needs to hold the $3,150 level. A drop below the $3,150 support zone could spark a sharp decline. The next significant support is near the $3,000, below which the price could drop towards the $2,880 support area in the near term.
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