Ethereum (ETH) Price Drops Another 13% as the Leading Altcoin Plunges to Its Lowest Level

During Monday's early Asian hours, the leading altcoin plunged to $1997—its lowest level since December 2023.

The price of ether (ETH) dropped another 13% over the past week. During Monday's early Asian hours, the leading altcoin plunged to $1,997 – its lowest level since December 2023.

This downturn occurred as the cryptocurrency slipped below the critical $2,000 support level once again.

The decline was fueled by a growing bearish bias.

At this juncture, the Relative Strength Index (RSI) on the 4-hour chart slid below 30, indicating that the cryptocurrency was deeply undervalued and oversold.

However, despite this extreme reading, the RSI showed no signs of bouncing back upwards.

This signaled that the selling pressure was becoming more pronounced and persistent.

If the RSI continues to move lower, it could indicate a lack of buying interest in the market.

As a result, the sellers were able to exert more influence over the price.

This imbalance in market forces could lead to a continuation of the downward trend.

The implication of the unbalanced market forces was highlighted by the fact that the Leading Spans A (green) and B (red) formed dynamic resistance above the altcoin's price at $2,346 and $2,742, respectively.

The Ichimoku Cloud tracks the momentum of an asset's market trends and identifies potential support/resistance levels.

When the price trades above this cloud, the market is in an uptrend.

Conversely, when an asset's price falls below the cloud, the market is in a downtrend.

In this scenario, the cloud acts as a dynamic resistance zone above ETH's price. It reinforces the likelihood of continued downward movement if the coin's price remains under it.

At press time, the cryptocurrency trades significantly below this cloud and has done so since January 25.

This signaled that the market was largely in a downtrend.

The implication of this varied according to the timeframes being used.

The lower time frames highlight that the market is currently ranging.

The implication of this is that the current downtrend may be winding down.

However, on the larger time frames, the unbalanced market force is continuing to push the market downwards.

The implication of this is that the market is likely to continue moving lower.

This unbalanced market force was tipped by a glance at the latest data from Glassnode.

The on-chain analytics firm revealed that the percentage of ETH wallet addresses whose funds have an average buy price lower than the coin's current price slipped to a year-to-date low of 50%.

This means that only 50% of all addresses holding ETH are in profit. For context, it was 82% at the beginning of the year.

The trend can worsen the selloffs among ETH traders, as many are now attempting to offload their holdings to minimize losses.

If selling intensifies, it can further drive ETH's prices down, reinforcing bearish momentum and potentially triggering more stop-loss sell-offs.

The post Ethereum's $2K Support May Not Hold As 50% Of ETH Holders Slip Into Losses - Next Price Targets In Sight appeared first on Crypto Advanced.