The Ethereum (ETH) price fell under the essential $2,000 threshold to trade at $1,999 during Monday morning sessions of the Asian market. The second-biggest cryptocurrency by market value has recorded a 5.5% decrease during the previous day which has continued its week-long decline of about 20%.
The crypto market faces downward pressure because former U.S. President Donald Trump released an Executive Order that established a Strategic Bitcoin Reserve.
The institutional acceptance of Bitcoin has increased through this move but traders experienced disappointment when the government failed to announce immediate Bitcoin purchasing plans which caused Ethereum and other digital assets to decline.
The technical design of Ethereum indicates that its price will likely remain weak. The asset has experienced ongoing resistance at crucial levels since more than twelve months ago. Analyst Tony “The Bull” Severino found that Ethereum has never managed to cross above the quarterly Parabolic SAR indicator which demonstrates strong resistance.
The quarterly SuperTrend resistance point has acted as a barrier for Ethereum which indicates that market participants are hesitant to enter new positions. The previous important support area at $2,100 has evolved into a key resistance barrier.
The potential decline of ETH will extend to $1,105 when it breaks below the $2,098 mark of the lower Bollinger Band and market selling activity increases. The bearish technical signals contradict large investors who continue to purchase ETH according to on-chain data.
The buying activity of wallets that control more than 100,000 ETH reached approximately 330,000 ETH during the last 48 hours according to Crypto analyst Ali Martinez. A Wyckoff reaccumulation phase might appear before a major rally based on current market signals.
A bullish recovery for Ethereum requires it to break above $2,125 to establish new upward momentum. ETH has the potential to rise toward $2,359 if it surpasses its current resistance level of $2,125. Current support levels must be maintained to prevent further price drops during the upcoming days.
Also Read: ETH Price Has Dropped 30% In Past Month: Analyst Predicts $18,000!
