The Ethereum Foundation sold 100 ETH on Dec 17, which increased the token’s negative outlook. The Foundation liquidated 4,466 ETH in the last year, totaling $12.6 million.
These sales are timed with price highs, as seen by the fact that 15 of these 32 sales happened close to market peaks. Because of the Foundation’s activities, Ethereum‘s price has dropped 17% since the sale, adding to the market’s continued instability.
Ethereum’s triple top and bearish outlook
Crypto analyst Sensei has pointed out a potential triple-top pattern in Ethereum’s price action. This suggests resistance at higher price levels and the possibility of further downside.
According to his analysis, the MA50 at $3,100 is the next key support level. Ethereum’s price, currently at $3,336.94, has seen a 9.42% decline in the past 24 hours, raising concerns about its ability to maintain momentum above this level.
However, Ethereum’s recent price movements have been capped by resistance near $4,107.80. Despite a current price of $3,336.94, the technical outlook remains weak.
Source: X
The MA(7) at $3,518.31 indicates short-term momentum, while the MA(20) at $2,872.05 and MA(50) at $3,063.11 suggest a longer-term bearish trend. These indicators reinforce the challenges Ethereum faces in maintaining its current price.
Ethereum’s trading volume and market sentiment
Currently the token has recorded high trading volumes in the last 24 hours with over a million ETH traded in the market setting an active traders sentiment even in times of price drop. The market capitalization of Ethereum has now reached $396.58 billion which is 10.29% less than 7 days ago.
Despite this reduction, the fact that the volume has moved up shows traders are responding to changes, but this is still a bit bearish.
According to the technical analysis of Ethereum it shows that through Bollinger Bands it is as low as 3,273.60 which may indicate that it is oversold.
Meanwhile, the Relative Strength Index (RSI) is at 19.31, which is below the 30 threshold. This further suggests that Ethereum could see a short-term price reversal if the market reacts positively.
