Ethereum Tests $2,800 Support Amidst Bearish Market Sentiment

Ethereum Faces Downward Pressure as Daily RSI Signals Bearish Outlook Below $3,400

Ethereum (ETH) has been facing downward pressure in recent days, with the daily Relative Strength Index (RSI) signaling a bearish outlook below the $3,400 level. This development comes as the cryptocurrency market experiences a notable price decline, with ETH currently trading near the $2,945 level and witnessing an 8.90% price drop in the past 24 hours.

The recent price action has seen ETH struggle to maintain its bullish price action pattern, leading to a significant $200 million worth of outflows from exchanges. This outflow, amid bearish market sentiment, hints at potential accumulation and could cause heavy buying pressure and further upside rally. However, this outflow began when the altcoin failed to maintain its bullish price action pattern on the daily time frame.

Ether is currently trading near the $2,945 level and has witnessed a price decline of over 8.90% in the past 24 hours. Despite the current market sentiment and notable price decline, traders and investors have shown strong interest and confidence in the token, resulting in a 90% jump in trading volume. This is the first time ETH has fallen below the $3,000 level since pro-crypto Donald Trump won the presidential election. However, looking at the current price range, Ether seems to be in an ideal range to buy.

According to expert technical analysis, with the massive price drop, ETH has reached near its strong support area of $2,800. Based on the recent price action, if Ether holds above the $2,800 level, there is a strong possibility it could soar by 30% to reach the $3,850 level in the future. Conversely, if it fails to hold this support level and closes a daily candle below $2,800, we could see a price drop of 20% to the next support at the $2,250 level.

The bearish market sentiment has pushed ETH into a downtrend, as it is trading below the 200 Exponential Moving Average (EMA) on the daily time frame. Long-term holders display confidence, yet recent market dynamics indicate a bearish