Ethereum shows signs of potential market shifts with a Doji pattern while facing a drop in dominance to 7.48%. Analysts predict a rebound if Bitcoin’s momentum cools, though large sell-offs by crypto whales indicate rising risks. The market remains uncertain, with significant levels to watch for future price movements.
Ethereum has managed to stay above the $1,800 mark, which is notable given its struggles with resistance levels lately. The emergence of a long-legged Doji on its monthly chart signals potential volatility. According to analyst Ted Pillows, this candlestick illustrates market indecision, where neither buyers nor sellers have established dominance. Such patterns often precede significant shifts in market sentiment, especially after prolonged periods of stagnation or declines.
Since late March, Ethereum has failed to break through the $2,000 barrier, despite seeing some rebounds from earlier lows. Yet, the overall situation appears bleak since the cryptocurrency is still over 55% below its peak from December. Analysts are in agreement that a decisive move above the $2,000 to $2,100 range is critical for validating any recovery efforts.
In addition to price perils, Ethereum’s dominance in the market has tumbled to a yearly low of 7.48%, as noted by analyst Bitcoin Buddha. Interestingly, he interprets this decline as a potential precursor to a rally, believing that when Bitcoin’s own dominance wanes, capital might flow back into Ethereum. He projects that ETH could reclaim around 14% to 22% market share, stoking hopes for a price rise.
However, caution persists in the broader market context. Recently, crypto whales unloaded around 262,000 ETH, equating to about $445 million, which puts additional pressure on prices. This wave of selling might suggest that larger investors are safeguarding against likely volatility or prepping for a possible downturn, which doesn’t help short-term bullish outlooks unless new buyer interest emerges swiftly.
With Ethereum mired in a tight trading range, hovering around the 100-hour moving average at about $1,821, it continues to face resistance around $1,840. This persistent consolidation above the moving average highlights the current indecision in the market, as both sides grapple for control ahead of significant movements.
Looking at momentum indicators paints a worrying picture, too. The RSI is currently at 41.96, hinting at weakening buying strength but still above oversold levels. It’s another indication that traders are being extra cautious, watching closely for either a downward breakthrough or an unexpected surge if fresh buying interest emerges.
Moreover, the MACD histogram backs up bearish tendencies, showing an increasing disconnect between the MACD and its signal line, while both remain below zero. The growing red bars indicate mounting downside pressure. Ethereum now hangs above $1,750; however, if this level is broken, it could revisit support in the $1,500 to $1,600 range. Conversely, a clean breakout above $2,000 could shift momentum, igniting a robust rally. For now, the market remains in a tense standstill, caught between the allure of another breakout and lurking downside risks.
