Ethereum Breaks Below Key Support Level as Bears Dominate

• At the time of writing, ETH is trading at $2132, down 3.95% in the last 24 hours.
• If the price surges and manages to go above $2244 then it will likely test $2282.

Optimism over the anticipated approval of spot Bitcoin ETF applications in the U.S. market has propelled Bitcoin to the forefront of the larger market rise over the last two months.

However, there was a noticeable slowdown in crypto trading activity on the final non-holiday weekend of the year, which might indicate that the market has reached its top for 2023 and will likely stay flat until 2024.

A noteworthy change in investor attitude toward profit-taking was marked by $33 million worth of Bitcoin outflows last week. At the same time, the analysis from CoinShares clarifies this pattern, stressing that it seems to be more of a sign of profit-taking than of a general shift in attitude towards cryptocurrencies. In addition, Ethereum saw some small outflows as well, shedding $4.4 million.

Trading in Red

The price of Ethereum was unable to break over the $2,300 barrier level. After reaching around the $2,330 area, ETH began a precipitous fall as bears took over. Moreover, the price recently broke below the key support level of $2154.

Source: CoinMarketCap

At the time of writing, ETH is trading at $2132, down 3.95% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 39.12%.

If the price surges and manages to go above $2244 then it will likely climb higher to test the $2282 resistance area. On the other hand, if the price maintains the current bearish momentum and goes below $2080 support level then it will likely decline further to test $2043 level.