On Thursday, the global cryptocurrency market flashed red as the Crypto Market Cap fell below $1.3 trillion. Bitcoin, the world’s most valuable cryptocurrency, fell below the critical support level of $32,000. It has been progressively losing ground, hovering at the first support level of $30,900.
Ethereum, the second-most valuable cryptocurrency in the world, remained erratic near the $2,000 price level.
The drop below $2000 wreaked chaos among investors and the cryptocurrency industry. With a market worth of $224 billion, ETH is now trading above $1,930. While the bears appear to be in command, it appears like the price is being held steady.
ETH Price Outlook
With the re-test, ETH bulls attempted to return above $2000 but were brutally denied. As long as the price does not make a lower low, bulls have a chance.
It was unable to break beyond its first resistance level of $2,014 and ended the day at $1,925. If the bearish trend continues, ETH might fall under the $1,800 support level. The $1790 and $1707 support levels then enter the picture. The first significant support level on the upside is $2014, followed by $2103 and $2168.
For the time being, as long as the $1800s hold, we have a chance to return to the $2200s and test the resistance trendline.
On chain Metrics Seem Ok for ETH!
According to Santiment’s findings, ETH’s Daily Active Addresses have remained stable so far, with an average of over 400k addresses engaging with the network since the beginning of the year.
On exchanges, we’re seeing yet another dramatic drop in ETH supply, which is a good indication because it reduces sell pressure. If this trend continues, we will have a more optimistic perspective in the future.