Ethereum Faces Bearish Pressure as Brief Correction Underway

• At the time of writing, ETH is trading at $2517, down 0.98% in the last 24 hours.
• If the price manages to go above $2611 level, then it will likely test $2659 resistance level.

A significant amount of the Bitcoin (83%), Ethereum (84%), and XRP (81%) supply is profitable, according to a recent publication by Santiment. Movements outside of the 55–75% range have traditionally been seen as low risk, while those within the range have been seen as average.

The PSP indicator tracks the portion of the entire supply that is in profit. Observing the price path of Bitcoin throughout the two prior market cycles indicates an intriguing feature. As an example, a substantial correction ensued the first time PSP rose over 80 after the trough.

According to the most recent analysis from Singapore-based cryptocurrency asset trading firm QCP Capital, there is a good chance that Ethereum (ETH) will soon see substantial increases due to speculation of an spot Ethereum exchange-traded fund (ETF) being approved by the US SEC.

The Bitcoin halving in mid-April and the possible approval of the Ethereum Spot ETF in May are the next major events in the cryptocurrency market. In the meantime, broader economic trends might provide crypto market with direction.

Brief Correction Underway

Following the spot Bitcoin ETF listings, there was a huge correction in the cryptocurrency market. As Bitcoin’s market share fell below 50%, Ethereum made a comeback. However, ETH has been facing brief selling pressure lately.

Source: CoinMarketCap

At the time of writing, ETH is trading at $2517, down 0.98% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is down 8.15%. If the price manages to go above $2611 level, then it will likely climb further to test $2659 resistance level. On the other hand, if the price manages to go below $2466 then it will likely test $2286 support level.