Critical Decline: Ethereum’s Struggle Continues, as Bear Market Eyes Sub-$3K Fall

Key Points

• Ethereum struggles to reclaim $3.4k support, hinting at a possible drop below $3k.
• A poll shows strong support for Danny Ryan to lead the Ethereum Foundation amidst criticism.

Ethereum has recently struggled to secure the support level of $3.4k.

Data indicates a potential drop below $3k in the near future.

Ethereum Leadership Criticism

The leadership of Ethereum has faced criticism, particularly for perceived inefficiencies and lack of clear direction.

An informal poll showed that 97% of 335 voters, who collectively held 51,198 ETH, supported the former researcher, Danny Ryan, to head the Ethereum Foundation.

Vitalik Buterin, the co-founder of Ethereum, clarified that he alone decides on changes in the Ethereum Foundation’s leadership.

Long-Term Holder Confidence

An analysis of long-term on-chain metrics reveals that long-term holders remain confident in ETH, with only moderate profit-taking observed from the Long Term Holder Net Unrealized Profit/Loss (LTH NUPL) metric.

However, this confidence has not been enough to halt the steady downtrend of the altcoin king in recent weeks.

The $3.4k-$3.5k range acted as a support zone for ETH in June and July of 2024 before flipping to resistance.

This area has been crucial since then.

A rally beyond $3.5k in January was swiftly reversed, and the price action has been forming lower highs and lower lows ever since.

The daily Relative Strength Index (RSI) agrees with the bearish structure, displaying a reading below 50.

The On-Balance Volume (OBV) is hovering around a support level from November and December, indicating the weakness of the buyers.

The 3-month liquidation heatmap suggests a move to $2,850 is highly probable.

There are liquidity pockets at $3,460 and $3,800, with a sizable cluster at $4.2k.

The magnetic zone at and below $3k suggests a downward move is the most likely outcome in the coming days, aligning with the price action of the past month.

The liquidation heatmap indicates that $3k, $2.8k, and $2.7k are the next targets.

However, it remains uncertain whether all these targets will be achieved in the coming weeks.

Given the weak sentiment around Bitcoin, traders are advised to wait for more favorable conditions before considering long positions.

The information provided does not constitute financial, investment, trading, or other types of advice and reflects solely the writer’s opinion.