Ethereum price traded downward for the second successive day on Thursday, coming within touching distance of a key support level. The ETHUSD pair was down by 0.3%, with the crypto coin trading at $3,229 at the time of writing, after rejecting action below $3,200.
ETH Momentum Signals More Losses
The $3,200 mark has served as a support level for Ethereum price for the last two months. Therefore, a decisive breakout below it could confirm a bearish takeover of the market. ETH price is at -5.5% in the last month and is also -1.5% below the level it traded six months ago. Therefore, investors should watch out for the $3,200 support mark for cues on the coin’s momentum.
Ethereum’s underperformance is accompanied by a decline in its DeFi activity DeFiLlama reports that Ethereum chain’s Total Volume Locked (TVL) declined by 1.9% in the last week and stands at $64.4 billion as of this writing. On the other hand, rival chain, Solana’s TVL grew by 25.9% in the same period. A continuation of that trend will lead to reduced demand for ETH coins and put stress on the price.
However, Ethereum’s ETF performance gives the impression of an underlying strong investor confidence in the coin. Its nine traded spot ETF products have reported net positive inflows in the last six successive sessions, with Wednesday’s session recording $70.7 million worth of inflows. That could provide support for ETH price in the near-term as it seeks to find its footing.
Ethereum Price Prediction
The momentum on Ethereum price leans to the downside and the sellers will likely stay in control if resistance persists at $3,258 pivot. The coin will likely find initial support at $3,176. However, a stronger bearish momentum could break below that level and take it to the second support at $3,121.
On the other hand, the buyers will take control if ETHUSD goes above $3,258. In that case, the pair is likely to move to the first resistance at $3,333. The downside narrative will be invalid if ETH goes above that hurdle. Also, an extended control by the buyers could push the coin to test the second resistance at $3,387.
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