ETH Price May Trend Downward for a While Before Climbing to $4000

Crypto News – Analysis of the price of Ethereum (ETH) points to possible turbulence before it attempts to go through $4,000 once more.

ETH Price May Trend Downward for a While Before Climbing to $4000

Even if ETH is sandwiched between levels of strong support and resistance, it might be ready for a significant correction, perhaps of roughly 12.5%, in the near future. The Pi Cycle Top Indicator, which shows Ethereum’s trajectory, suggests potential short-term corrections. The difference between the 111-day moving average and twice the 350-day moving average is the basis for this expectation.

The maximum and lower bounds are now established by the indication at roughly $4,295 and $2,836, respectively. Despite the possibility that this range indicates market stability, Ethereum‘s current position indicates that a decline may be approaching.

Since March 30, ETH’s daily active addresses have steadily decreased, lending credence to the pessimistic storyline. This measure is important because it shows user engagement and network activity; a negative trend suggests a decline in usage and interest. As a result, it can have a negative impact on Ethereum’s price because of a perception of declining investor confidence or demand.