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Will a supply surge within a rising channel push Ethereum’s price below $3,600 as the crypto market experiences a momentum drop?
With a sudden shift in intraday sentiment, Ethereum is edging closer to the $3,600 support level. After a 2.41% decline in the past 24 hours, Ethereum’s market cap has fallen to $435 billion.
As Bitcoin tests the $95,000 support, will the sudden loss of momentum in the crypto market drag Ethereum below $3,600? Let’s find out.
Ethereum Warns Channel Breakdown
On the 4-hour chart, Ethereum’s price action shows a rising channel pattern. Currently, the price trend reveals a bullish failure to break through the overhead resistance trend line, leading to a negative cycle.
The price of $ETH has dropped from the 24-hour high of $3,762 to the current market price of $3,619. It recorded a 24-hour low of $3,582. The $ETH price trend is showing low price rejections from the local support trend line, indicated by the long tails in the 4-hour candles.
The MACD and signal lines have diverged negatively, increasing the likelihood of a bearish outcome. Furthermore, the bearish histograms on the MACD indicator are on the rise, maintaining a sell signal for Ethereum.
Ethereum ETFs Boost Bullish Sentiment
The Ethereum ETF market had a positive run last week, supporting the potential for a bullish recovery. Between November 25 and November 29, U.S.-based spot Ethereum ETFs saw a net inflow of $467 million.
Leading the charge, BlackRock’s ETF saw a net inflow of $300 million last week, followed by Fidelity with a net inflow of $120 million. As Ethereum ETFs continue to see increased inflows, this trend is likely to drive demand for $ETH in the crypto market.
Ethereum Price Targets
At present, the chances of sustaining a bullish momentum above the support trend line are limited, as Bitcoin is experiencing increased supply pressure. The immediate support below the rising trend line is the $3,570 pivot level.
However, the increased supply suggests a potential bearish breakdown, with the next test being the S-1 pivot support at $3,392.46. If the broader market recovers and Ethereum manages to maintain dominance above the $3,600 mark, the next resistance is in the supply zone, around $3,740.
For a bullish continuation, Ethereum’s price must break through the overhead resistance trend line, boosting the likelihood of reclaiming the $4,000 price point.