Bitcoin has recently achieved a remarkable milestone by reaching a new all-time high (ATH) of $75,337. This surge is largely attributed to the unexpected outcome of the U.S. presidential election, with Donald Trump securing victory. The political shift seems to have bolstered Bitcoin’s momentum, setting it apart in the cryptocurrency market. On the other hand, other digital currencies like Ethereum have struggled to match this impressive performance. As it stands, Ethereum (ETH) is significantly below its peak value, which was last observed during the bullish market of 2021.
Ethereum’s Lackluster Performance
Ethereum (ETH) has faced a challenging period, with its journey throughout the year being far from smooth. The anticipation surrounding ETF launches in July was initially thought to be a catalyst for a bullish run. Contrary to expectations, Ethereum experienced negative outflows, leading to a 30% decline in its price. While Bitcoin continues its upward trajectory, Ethereum is trapped in a downward price channel, indicating a lack of momentum necessary for a substantial rally. The daily charts consistently exhibit a downtrend, with each attempt to rise being thwarted by strong selling pressure.
At present, Ethereum encounters a formidable resistance around $2,650, marking the upper limit of its current downward channel. Should it manage to surpass this hurdle, it could potentially gather some upward momentum. However, another significant challenge lies ahead at $2,750, a level where previous rallies have faced obstacles.
Ethereum Faces Selling Pressure
Over recent months, Ethereum has been under continuous selling pressure, particularly from large holders, which has hindered its upward movement. Since late summer, Ethereum has struggled to maintain crucial price levels, contributing to a more pessimistic outlook compared to Bitcoin’s consistent rise. This contrast highlights the market’s focus on Bitcoin’s robust momentum, leaving Ethereum in a precarious position, unable to keep pace. For now, Ethereum’s future remains uncertain unless there is a shift in market sentiment favoring it more.
Ethereum: Will It Rise or Fall?
Ethereum finds itself at a critical juncture. If it fails to breach the $2,620 resistance level, it risks another decline. The initial support on the downside is around $2,520, followed by more substantial support near $2,500. Should the price fall below $2,500, it could experience further declines to approximately $2,450. A more significant drop could push it towards the $2,320 support level, with the next major support at $2,350.
Conversely, if Ethereum manages to break above the $2,720 resistance, it could pave the way for additional gains. In such a scenario, Ether might rise towards the $2,750 resistance zone, signaling potential bullish momentum.
