Ethereum, the blockchain giant, has seen a notable decrease in price, slipping over 15% in the last week. This downturn is primarily attributed to an unexpected increase in Ethereum’s supply since April 2024, diverging from its previously deflationary path post-Merger. The total supply has escalated to 120.4 million ETH, causing investor unease and driving down demand.
As Ethereum struggles below the crucial $3,087 support level, the crypto market is on edge. Trading analyses indicate potential further losses, with Ethereum currently facing strong bearish momentum. Despite this, some indicators suggest a possible market reversal, given Ethereum’s entry into oversold territory on the Relative Strength Index (RSI).
However, optimism remains cautious among traders, with Ethereum’s price nearing the critical $3,000 mark. This zone is closely monitored for either a market correction or deeper decline, contingent on forthcoming trading behaviors. The community watches keenly, hoping for a shift in Ethereum’s market dynamics.
