Ethereum Price Analysis: Why is ETH Under-Performing This Year?
TLDR:
- Ethereum (ETH) price is underperforming compared to the broader crypto market
- ETH price dropped 5.2% between Sept. 3-4, facing resistance at $2,550
- Factors include declining network fees, weak spot ETF demand, and low staking rewards
- Macroeconomic uncertainty and potential tech stock bubble are additional concerns
- ETH price is attempting recovery but faces resistance around $2,400-$2,440
Ethereum, the second-largest cryptocurrency by market capitalization, has been underperforming compared to the broader crypto market in recent weeks. This article examines the factors contributing to ETH’s price struggles and its attempts at recovery.
Between September 3 and 4, Ethereum’s price dropped by 5.2%, facing strong resistance at the $2,550 level. The cryptocurrency has been unable to close above this price point for eight consecutive days, raising concerns among traders about its ability to keep pace with a potential crypto market resurgence.
As of the latest data, ETH is trading below $2,440 and the 100-hourly Simple Moving Average.
The price is currently attempting a recovery, having moved above the $2,365 and $2,380 resistance levels. However, it faces significant hurdles near the $2,400 mark, with a bearish trend line forming resistance at this level.
Factors Contributing to ETH’s Underperformance
Macroeconomic Factors and Tech Sector Concerns
The broader economic landscape is also influencing Ethereum’s performance:
Recovery Attempts and Future Outlook
Despite these challenges, Ethereum is attempting a recovery. The price has climbed above the 23.6% Fibonacci retracement level of the recent downward movement. However, to gain significant upward momentum, ETH must clear the $2,440 resistance level.
If Ethereum fails to break through this resistance, it could face further decline, with support levels at $2,365 and $2,350. A move below these levels could push the price towards $2,310 or even $2,250 in the near term.
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