Ethereum Price Hovers Around $2,190: A Delicate Balance Between Profit-Taking and Bullish Sentiment

Ethereum price has been struggling to hold above the crucial support of $2,190 for the past few days amid profit-taking by investors. At the time of writing, the second-largest cryptocurrency by market cap was trading slightly higher at $2,216.20. Even so, Ethereum’s total market cap remains 1.33% lower for the day at $266 billion, while the total volume of the asset traded over the same period declined by 2.56%.

Fundamental Analysis

Ethereum price has been trading sideways for the past few days amid profit-taking by whales, triggering an increase in selling pressure. The Ethereum price has been positively impacted for the past two months by the recent bullish momentum in global crypto markets, fueled by Bitcoin’s surge to $44,000.

Over the years, ETH has maintained a distinctive market position attributed to its extensive developer community, widespread adoption, and pivotal role in decentralized finance (DeFi) and various blockchain applications. However, the impact of significant holders selling could continue driving the ETH price lower in the ensuing sessions. Despite these concerns, the overall market sentiment remains cautiously optimistic, leaving room for potential further growth in the asset’s price.

According to CoinMarketCap, the global crypto market cap has increased to $1.61 trillion, over the past few days. The Crypto Fear and Greed Index, which measures the key emotions driving the market, has improved slightly over the past day, highlighting an increase in risk appetite.

The recent decline in the greenback has buoyed risk assets, particularly cryptocurrencies. The US dollar dipped on Wednesday against six major currencies on bets that the US central bank will soon begin cutting rates. The Treasury yields have also slipped off their highs on the back of the Fed’s dovish tilt. The yield on the benchmark 10-year Treasury note declined to 3.888% on Wednesday, while the yield on the 30-year Treasury bond dropped to 4.015%.

Focus will be on the Fed’s favorite inflation gauge due this week. The core personal consumption expenditure index (PCE) is slated to be released on Friday, with markets anticipating a 0.1% decrease in the yearly reading. Analysts will be closely watching the data, hunting for clues on whether the inflation has slowed enough for the US central bank to start easing its policy in 2024.

Ethereum Price Outlook

Ethereum price has been trading sideways for the past few days, moving between the tight range of $2,190 and $2,250. As seen on the daily chart, the lead altcoin has failed to start a fresh increase above the critical level of $2,300. Even so, it remains above the 50-day and 200-day exponential moving averages and the 100-day simple moving average.

As such, if the Ethereum price fails to clear the resistance level at $2,300, it could continue dropping as bears eye the immediate support at $2,100. A drop below this level might pave the way for further losses to the next support at $2,030.

ETH Price Chart