Ethereum has fallen sharply in the past 24 hours, sliding 7.08% to $4,152.70 as the second-largest cryptocurrency loses its grip on the crucial $4,200 level.
This marks a significant shift after a week of consolidation below $4,500 resistance, with sellers now firmly in control.
The break of $4,200 raises the risk of deeper corrections, although long-term holders continue to accumulate ETH, pulling large volumes off exchanges.
The clash between short-term pressure and long-term conviction is setting the stage for Ethereum’s next move.
Source: CoinMarketCap
Market weakness driven by macro factors and ETF outflows
Ethereum’s latest drop reflects wider market weakness, with Bitcoin also recording declines. Altcoin liquidations exceeded $1.7 billion over the same period, intensifying downward momentum across digital assets.
Broader economic conditions are adding to the caution. Persistent inflation and concerns about additional interest rate hikes from the Federal Reserve have weighed heavily on investor sentiment.
Outflows from crypto ETFs in the United States have also deepened selling pressure.
Institutional flows are closely watched as indicators of broader sentiment, and the recent moves suggest that large investors remain hesitant amid global uncertainty.
Exchange outflows show steady accumulation
On-chain data continues to paint a different picture. More than 420,000 ETH has been withdrawn from exchanges this week, signalling accumulation by long-term holders.
These moves usually point to coins being moved to cold storage for safekeeping rather than immediate trading.
Whale activity has also increased as large holders continue to purchase Ethereum during the downturn.
This accumulation trend reduces available supply on exchanges and could support recovery once selling pressure eases.
The divergence is now clear: while short-term traders are selling, long-term investors appear to be buying the dip, positioning themselves for potential future gains.
Technical levels highlight downside risks
Ethereum now trades below both the 20-day exponential moving average and the critical $4,200 support level, tilting short-term momentum further to the downside.
The cryptocurrency, however, still holds above its 200-day EMA, suggesting that its broader market cycle remains intact despite near-term weakness.
The Relative Strength Index has dropped to 39.4, hovering close to oversold territory. Values below 40 typically trigger rebounds, but current momentum remains bearish.
Resistance continues to sit at $4,450–$4,510, where Ethereum has struggled to break higher. With $4,200 breached, the next significant support zone lies between $3,800 and $4,000.
If selling intensifies, analysts warn that prices could extend to the $3,700–$3,800 range, mirroring past consolidation patterns.
Focus shifts to new support zones
The immediate focus now shifts to whether Ethereum can stabilise above $4,150 and hold the $3,800–$4,000 support zone. A failure to defend these levels could open the door for further declines in the short term.
Despite the sharp fall, accumulation trends suggest any deep correction may be temporary. Analysts maintain that Ethereum still has long-term potential, with price targets as high as $10,000 for the current cycle.
The next 24 to 48 hours will be crucial in determining whether Ethereum consolidates at these levels or moves into a deeper correction.
Market participants continue to watch ETF flows, inflation data, and whale accumulation as key drivers of Ethereum’s trajectory.
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