Ethereum’s increased volatility and bearish price action pattern, what’s next?
Following the FOMC meeting, it was observed that Jerome Powell kept the key interest rate unchanged at 5.25-5.50%, and the Indian Union Budget is also over, but it didn’t affect the crypto industry. One thing that was noticed following this development the volatility of the world’s second-largest cryptocurrency, Ethereum, has increased.
Ethereum’s volatility increased from 38% to 53.4%
Recently, on February 1, 2024, according to data from on-chain analytics firm IntoTheBlock, the volatility of Ethereum has increased from 38% to 53.4% as of writing. Nevertheless, following this increased volatility, the 24-hour volume has decreased by over 4%, according to data by CoinMarketCap, which is uneven.
However, Ethereum and all other top cryptocurrencies are continuously experiencing downside momentum following the approval of the spot Bitcoin Exchange Traded Fund (ETF) in the United States. Since the Bitcoin ETF approval, Ethereum has dropped by over 15%, which is also observed in many other cryptocurrencies.
Overview of ETH Technical analysis
But this increased volatility indicates that the market might face some more downside momentum till the $2,150 level. This is because, according to expert technical analysis, Ethereum in a 4-hour time frame gives a breakdown of the bearish flag price action pattern. This breakdown indicates that in the coming days, Ethereum might face some bearish moves till the next support at the $2,150 level.
To support this bearish move, it is observed that Ethereum is also experiencing a bearish golden crossover at the same time frame. Nevertheless, at the current time, overall market sentiment is unpredictable. Despite positive developments, we experienced a massive fall and similarly, a bullish breakout and then consolidation and again breakout which didn’t sustain in this market shows an unstable market.
Additionally, traders and investors are eagerly waiting for the bullish move. This situation might change following the opening of the US market.
However, as of writing, Ethereum is trading near $2,270, and in the last 24 hours, it experienced over 1.3% of downside momentum. If we look at Ethereum over a longer period, in the last 7 trading days, the price of ETH has surged by 3%, and in the last 30 trading days, the price of ETH has plummeted by 1.4%.
One more thing to remember is that currently, the overall cryptocurrency community, as well as asset managers, are waiting for the spot Ethereum ETF approval, which may be the final chance for the bull run.