Negative sentiment is gradually rising again in the overall cryptocurrency market, with major digital assets such as Etherthe second-largest cryptocurrency has experienced a noticeable deterioration that has led to a slowdown in its price recovery. Due to the sudden decline, several cryptocurrency analysts believe that the altcoin may soon face a prolonged bear move.
Ethereum is entering a correction phase
IC News, a news platform, delved into the current Ethereum price action, victim an insightful perspective on its performance in the near term. After careful analysis, the platform highlighted that ETH may be on the verge of a transient corrective phase as market momentum wanes from the recent rally. The platform’s predictions are driven by signs of redemption conditions and profit-taking in retail and institutional investorswhich may affect the stability of the value of crypto assets.
According to IC News, Ethereum is currently approaching a critical resistance area at the $3,600 price level, where there is ample supply and room to take profits. Given how forceful this resistance level is, the platform says there is a good chance a tiny correction period will occur soon to limit buying pressure.
Additionally, IC News notes that in order to create a more stable uptrend for Ethereum, the market will need to return to the 200-day moving average (MA).
While the analysis may raise concerns about the altcoin’s short-term trajectory, a pullback could prove hearty for the asset. This is because the altcoin can create novel forceful support levels during the correction phase and strengthen its base for future price expansion. It can also provide several buy signals and opportunities for novel and experienced investors, allowing them to re-evaluate their positions in delicate of deteriorating market sentiment.
Despite the sudden price drop, digital assets continue to show bullish potential in the bigger picture, as confirmed by market expert and trader Captain Faibik anticipation medium-term price target for Ethereum of $5,450.
So far, Ethereum continues to trade within a widening wedge pattern, which is a key indicator of rising momentum. Meanwhile, Captain Faibik predicts breakout from a bullish formation in the coming days that will trigger another massive rally in ETH, potentially to $5,450 in the medium term.
ETH overtakes the American banking giant
Ethereum’s recent growth over the past few days, the altcoin has achieved key milestones, such as surpassing financial giant Bank of America in terms of market capitalization. on Sunday, ETH saw its overall market capitalization enhance by over 5%, reaching a total of $383 billion and exceeding Bank of America’s market capitalization by an impressive $40 billion.
IC News he stated that the high valuation of crypto assets compared to Bank of America reflects a changing active in the established sector as blockchain technology adoption and growth begins to overtake established banking systems.
Featured image from Unsplash, chart from Tradingview.com
