BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Ethereum Price Analysis: The Truth Behind Why ETH Dumped Below $3,000

by Sham
January 13, 2025
in Crypto, Opinion
A A
Ethereum Price Analysis: The Truth Behind Why ETH Dumped Below $3,000
10
SHARES
Share on TwitterShare on Reddit
  • ETH drops over 15% in a week as inflationary supply pressures grow.
  • Price hovers near $3,000 support, with RSI signaling a possible rebound.
  • Funding rates show signs of recovery, but bearish risks still loom large.

Ethereum has been in a rough patch lately, with its price sliding more than 15% in just a week. This downturn is closely tied to a shift in the network’s supply dynamics. After enjoying a deflationary environment following the Merge, Ethereum’s total supply has been increasing again—up by 0.37% in nine months, now sitting at 120.4 million ETH.

JUST IN: Ethereum $ETH falls below $3,000 for the first time in 66 days pic.twitter.com/DmDsYYjO4c

— BlockNews (@blocknewsdotcom) January 13, 2025

This return to inflationary levels, paired with weaker demand, has left investors worried about ETH’s price trajectory. On the 4-hour TradingView chart, Ethereum has dipped below a key support level of $3,087, signaling a clear downtrend. The big question now is whether ETH can hold this line—or risk falling further.

Technical Signals: Oversold RSI Sparks Hope

From a technical perspective, Ethereum’s price has dropped beneath both its 50-day and 200-day moving averages, further cementing its bearish trend. However, there’s a glimmer of hope. The Relative Strength Index (RSI) on the 4-hour chart has hit 22, putting ETH firmly in oversold territory.

This suggests a possible short-term price reversal, though the longer-term picture remains hazy. On the daily chart, ETH was consolidating between $3,189 and $3,330 before breaking lower. The RSI here is also close to oversold levels at 32, hinting at a potential recovery if buying pressure kicks in soon.

Funding Rates and Market Sentiment: Mixed Signals

On-chain metrics provide an interesting twist. As Ethereum approaches the $3,000 support zone, funding rates—reflecting trader sentiment—have begun to recover. This suggests that some traders are starting to open long positions, betting on a rebound.

However, the recent dip in funding rates had previously signaled growing bearish sentiment, and the market remains at a pivotal moment. If funding rates continue their recovery, we might see the start of a bullish phase for ETH. But if sentiment weakens again, the risk of further price declines remains high.

Final Thoughts: A Crucial Juncture for Ethereum

Ethereum’s price is teetering on the edge. With technicals showing oversold conditions and funding rates starting to recover, a rebound is possible—but by no means guaranteed. The key lies in whether ETH can hold above its $3,000 support and regain bullish momentum. For now, traders should keep a close watch on both price action and on-chain signals.

Tags: ethereumInvestorsprice declinestraders
Tweet3ShareShare4

DON'T MISS THESE! HOT OFF THE PRESS

SHIB Price Slips Amidst 80% Burn Rate Drop: Is Hope Fading for Shiba Inu?
Crypto

SHIB Price Slips Amidst 80% Burn Rate Drop: Is Hope Fading for Shiba Inu?

May 21, 2025
Stellar (XLM) Faces a Pivotal Test: Upside if $0.28 Holds, Deeper Dips if Not
Crypto

Stellar (XLM) Faces a Pivotal Test: Upside if $0.28 Holds, Deeper Dips if Not

May 21, 2025
Tron’s Digital Payment Dominance Fuels TRX Price Momentum
Crypto

Tron’s Digital Payment Dominance Fuels TRX Price Momentum

May 21, 2025
Hedera (HBAR) Breaks Downtrend Channel: Smart Money Eyes Retest for Bullish Continuation
Crypto

Hedera (HBAR) Breaks Downtrend Channel: Smart Money Eyes Retest for Bullish Continuation

May 21, 2025
Sui (SUI) Eyes $23.77 by 2030: Long-Term Outlook Remains Bullish Despite Current Consolidation
Crypto

Sui (SUI) Eyes $23.77 by 2030: Long-Term Outlook Remains Bullish Despite Current Consolidation

May 21, 2025
Cardano (ADA) Eyes C-Wave Rally to $0.94, If Key Support Holds
Cardano

Cardano (ADA) Eyes C-Wave Rally to $0.94, If Key Support Holds

May 21, 2025
Load More

Related News

SHIB Price Slips Amidst 80% Burn Rate Drop: Is Hope Fading for Shiba Inu?

SHIB Price Slips Amidst 80% Burn Rate Drop: Is Hope Fading for Shiba Inu?

May 21, 2025
Stellar (XLM) Faces a Pivotal Test: Upside if $0.28 Holds, Deeper Dips if Not

Stellar (XLM) Faces a Pivotal Test: Upside if $0.28 Holds, Deeper Dips if Not

May 21, 2025
Tron’s Digital Payment Dominance Fuels TRX Price Momentum

Tron’s Digital Payment Dominance Fuels TRX Price Momentum

May 21, 2025
Hedera (HBAR) Breaks Downtrend Channel: Smart Money Eyes Retest for Bullish Continuation

Hedera (HBAR) Breaks Downtrend Channel: Smart Money Eyes Retest for Bullish Continuation

May 21, 2025
Sui (SUI) Eyes $23.77 by 2030: Long-Term Outlook Remains Bullish Despite Current Consolidation

Sui (SUI) Eyes $23.77 by 2030: Long-Term Outlook Remains Bullish Despite Current Consolidation

May 21, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.