Ethereum (ETH) Drops 6% as Renewed Selling Pressure Hits Crypto Markets

Ethereum (ETH) continued to see further losses on Tuesday as selling pressure continued to hit the wider market, knocking the asset down as it failed to hold key levels of support. The fall has now caught the attention of the market once again, with the risk of further correction now being seen as possible.

At the time of writing, Ethereum is trading at $2,975, down more than 6% over the last 24 hours, according to market data from CoinMarketCap. Trading activity remained elevated, with daily volume exceeding $59 billion, while Ethereum’s market capitalization stood at roughly $359 billion. The move marks one of ETH’s steepest single-day declines in recent weeks and comes amid broader weakness across major digital assets.

Source: CoinMarketCap

Ethereum Risks Deeper Pullback After Sell-Off

Market analysis escalated further following the fall, especially after a popular crypto analyst, More Crypto Online, posted an updated analysis on the price structure of Ethereum. The analyst posted on X that the current market trend seems to be following what was expected in a technical analysis posted previously.

Source: X

As stated by the analyst, one of the major aims was for Ethereum to create another local low, but this now seems even more likely than before due to Tuesday’s sell-off. The strength and pace of the sell-off, however, indicated that the momentum is not stabilizing but rather building.

Additionally, More Crypto Online pointed out that the current sell-off is also supporting the idea that a move towards the $2,250-2,260 range may already be underway. This range is seen as a crucial area where Ethereum may attempt to find support should pressure continue to dominate market conditions.

Also Read | Ethereum (ETH) Poised for $4K+ Rally as Whale Activity and RWA Adoption Surge

Ethereum Rally Deemed Corrective

The analyst also added that the current price action supports the idea that the large top may already be in place. Specifically, the fact that the wave (B) is complete would mean that the preceding advance was not impulsive, making it more likely that the recent advance is corrective in nature.

Source: X

Although some market analysts saw the Ethereum price recovery from its low in November as the beginning of a new bullish cycle, this was not the opinion of More Crypto Online. The market analyst termed the price action as a corrective move in a larger downtrend, but this might change if market dynamics move in favor of a new bullish trend.

As of now, the future of Ethereum in the near term is unclear, as market trends are largely dependent on market sentiments, as well as the performance of Bitcoin. The coming trading sessions are expected to be crucial in determining whether the value of ETH moves further down or tries to recover.

Also Read | Ethereum (ETH) Pushes Toward $5,000 As Support Holds And Momentum Builds