Danger is increasing in altcoins: Ethereum could fall further!

Ethereum (ETH) has dropped to critical levels due to the increasing war tension in the Middle East. Altcoins, including Ethereum, experienced a decline of around 10 percent. The leader of the altcoins, ETH, fell below 2500 dollars after the news of Iran's missile attack on Israel.

Prominent data for Ethereum

An increase in a cryptocurrency's spot exchange reserve indicates more selling pressure and potential for more price declines. Ethereum exchange reserves rose as selling pressure increased. According to CryptoQuant data, ETH exchange reserves increased by more than 144,000 ETH in the last 24 hours.

Grayscale Ethereum Trust led the way with $26.64 million in outflows, while Fidelity's FETH reported $24.97 million in outflows. Bitwise's ETHW also saw a net outflow of $895,650. VanEck's ETHV recorded a net inflow of $2.74 million and 21Shares' CETH saw an inflow of $1.25 million. The other four spot ether ETFs saw zero flows.

Persistence above $2500 is required for an uptrend.

Due to geopolitical tensions, Ethereum, which fell below 2500 dollars, is trading at 2479 dollars as of the writing of the news. ETH, which presents a poor outlook from both technical and fundamental analysis perspectives, may face further selling pressure unless it can close above 2500 dollars on a weekly basis. In such a scenario, pullbacks to 2300, 2109, and 1930 dollars may occur successively.

Weekly closures above $2500 will strengthen buyers' hands. In such a scenario, upward movements towards $2750 - $3000 - $3294 - $3700 and $4078 can be followed.

This article does not contain investment advice or recommendation. Every investment and trading action involves risk, and readers should conduct their own research when making decisions.