Why Ethereum is Dropping Today? Key Levels and Analyst Predictions

After a strong breakout last week that had traders buzzing with optimism, Ethereum (ETH) seems to have hit a speed bump. The second-largest cryptocurrency, with a fully diluted valuation of about $377 billion, has seen its price drop by more than 6% since Tuesday, trading near $3,133 on Thursday, November 14, during New York’s mid-session.

The sudden slowdown has left many wondering—has Ethereum’s rally run out of steam, or is this just a minor correction before another surge?

At the same time, Bitcoin’s entry into a new price discovery phase has shifted market sentiment, raising questions about how Ethereum and other altcoins will perform in the weeks ahead. With the fear and greed index for Ethereum hitting 78 “extreme greed,” traders appear confident, but is this optimism justified? Here’s what top analysts are saying.

Key Levels to Watch for Ethereum Price Ahead

Ethereum recently confirmed renewed bullish sentiment after bouncing off its 200-week moving average (MA). This marks the first time since August’s crypto crash that Ether has closed consistently above the important $2,800–$2,900 support and resistance range, indicating that buyer interest may be returning at these levels.

ETH/BTC Pair Shows Signs of Reversal

Crypto analyst Michaël van de Poppe notes that Ethereum has underperformed against Bitcoin over the past two years. However, on the ETH/BTC daily chart, a bullish reversal pattern is emerging.

A support level around 0.034 BTC, along with a rising divergence on the Relative Strength Index (RSI), hints at a potential trend shift in ETH’s favor against Bitcoin, which could attract fresh interest from investors.

Institutional interest in Ethereum is on the rise, with U.S. spot Ether ETFs recently accumulating over $500 million. This increase in demand from large investors may support further price gains and reinforces Ethereum’s status as a sought-after asset.

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When Will Altseason Begin?

Crypto analyst Benjamin Cowen advises investors to be cautious about jumping into rising meme coins, warning that the “real altseason” has yet to begin. Cowen points out that Bitcoin dominance has increased steadily over the past two years, putting pressure on altcoins.

He predicts that a true altseason will only start when Bitcoin dominance drops sharply. Currently, the OTHERS/BTC pair has hit its lowest level since Bitcoin surged past $93,000 on Wednesday, signaling Bitcoin’s continued strength over the altcoin market.

The crypto market remains volatile, and investors should proceed with caution. Stay tuned to Coinpedia!