Ethereum Faces bearish Pressure Amid Market Fears
Ethereum’s price is in a deep bear market, down over 53% from it’s November peak. it has fallen below the critical $2,000 support level, nearing its lowest point since November 6.
The decline is partly due to reduced demand on Wall Street. All spot Ethereum ETFs have seen outflows for three straight weeks,with a net inflow of $2.52 billion. Total assets have dropped to $6.72 billion.
Growing fear in the crypto market has also contributed to Ethereum’s fall. The crypto fear and greed index is now at 21, indicating strong fear. When investor sentiment is weak, Bitcoin and altcoins tend to underperform.
Recent ETH token sales by the Ethereum Foundation haven’t helped.An ex-engineer, Harikrishnan Mulackal, warned that Ethereum’s future is at risk without clear leadership.
Ethereum faces competition from other layer-1 chains like Solana and BSC.On Monday, DEX protocols on Ethereum handled $1.012 billion in token volume,lower than BSC’s $1.63 billion and Solana’s $1.077 billion.
The ETH price crash followed a triple-top pattern on the weekly chart. A death cross on the daily chart on February 13 also signaled bearish trends. now, a pennant pattern is forming, suggesting a potential bearish breakdown.
A drop below the year-to-date low of $1,757 could lead to further declines to $1,500. However, the Federal Reserve’s interest rate decision on Wednesday could be a potential catalyst.A dovish tone from the Fed might lift Ethereum and other cryptocurrencies.
