Will Ethereum Escape Bearish Grip and Hit $2300 Again?

• Ethereum falls below $2,200, sparking investor concern over market stability.
• Cryptocurrency traders face $354 million in liquidations, with long positions hit hardest.
• CoinShares reports $43 million inflow into crypto, Bitcoin leads over Ethereum.

The cryptocurrency market experienced significant volatility, with Ethereum experiencing a notable drop within the last 24 hours, falling beneath the $2,200 level for the first occasion in seven days. Monday’s rapid downturn initiated a surge of transactions and provoked critical worries among investors about the market’s steadiness and prospective direction.

In the past 24 hours, the cryptocurrency market has seen a notable imbalance in trading behavior. Traders holding long positions in cryptocurrencies experienced a substantial liquidation of more than $354 million, greatly exceeding the $54 million in liquidations suffered by those holding short positions. This downturn in market sentiment occurred even though there were recent signs of a potential bullish flag pattern.

CoinShares’ recent report, despite the turmoil, revealed a positive development with an injection of $43 million in their weekly report on cryptocurrency. Bitcoin was the primary recipient of these funds, capturing the majority of the investments. Ethereum, on the other hand, experienced a smaller increase, with $9.7 million coming in, significantly less than that of Bitcoin.

Following the crash, there was a clear drop in the price of Ethereum, as the asset found it difficult to remain stable. Observers attributed this decline to significant investors who were selling their assets, taking advantage of the high prices Ethereum had reached earlier in the month, which were the highest in the last twelve months.

Additionally, the crypto market downturn was exacerbated by broader economic instability. This was highlighted by the forthcoming publication of important Consumer Price Index data and the inflation statistics for November. Investors were in a state of heightened alertness, expecting market volatility, particularly in light of the upcoming announcement and commentary from the Federal Reserve.

Ethereum Bears Against Bulls

As of the report, Ethereum’s trading price was $2,218, which represents a decrease of 1% over the last twenty hours. Meanwhile, the trading volume experienced a 16% increase during the same period, amounting to $14 billion, suggesting increased market activity.

Recent movement analysis indicates a downward trend on the daily chart. The current trading price at $2221 is above the 9-day exponential moving average (EMA). Meanwhile, the daily relative strength index (RSI) is at 56, suggesting a neutral state.

If ETH’s price surpasses the resistance zone at $2301, it will probably approach the $2349 mark. Conversely, if sellers push the price below the $2202 threshold, a further drop to the support level of $2198 is anticipated.