Here is the formatted article in HTML with emphasis and highlighting:
Ethereum’s Price Struggles to Stay Above $3,000, Signaling Bearish Sentiment
Despite significant volatility in recent weeks, Ethereum’s price is struggling to stay above $3,000, signaling a possible bearish sentiment in the long term. Although the coin experienced a 14.56% increase on August 8, it has since fallen further behind, and concerns among investors and market observers persist. At this time, Ethereum’s price is around $2,611, down from its peak of over $4,800 in May.
A “death cross” has been forming, which is a technical indicator that suggests bearish sentiment for the long term, intensifying the downward trend. The Moving Average Convergence (MACD) analysis, based on most indicators, indicates negative momentum but there are convergence signs, suggesting that the bearish sentiment may be subsiding. The outcome of this contradictory signal has left market participants questioning the direction of the cryptocurrency.
Another technical analysis tool, Fibonacci retracement levels, offers more insight into Ethereum’s price action. The current support level is at $2,140, which is 61.8% Fibonacci. On the flip side, the 0% Fibonacci retracement level, which is currently at $2,870.67, could serve as resistance and cause Ethereum’s price trajectory to deviate further.
Over the past few weeks, there has been a decrease in network activity, with daily active addresses falling from over 470,000 on August 3 to around 485,000 by almost all time. At press time, daily Active Addresses are down 230,000, which may be due to the declining value of Ethereum, as well as the fact that investors and users are less likely to engage in transactions on the network. This drop in network activity could further depress Ethereum’s price, which remains below its level.
In short, the formation of a death cross points to an increasingly bearish sentiment on Ethereum, suggesting that this wave may be even more bearish than it was yesterday. While MACD analysis has yielded some support from bulls and bull traders, overall sentiment is still pessimistic, with Fibonacci retracement levels and on-chain metrics providing additional information about how prices are moving.
Ethereum’s price movements and network activity will be closely monitored by investors and market observers as the market evolves. For more insights and information on cryptocurrencies, check out this article on CoinSeeks.com: Ethereum Price Analysis 2023 – What to Expect.
