Given the loss of momentum, is a decline to $3,392 imminent?

Will a surge in supply within a rising channel push Ethereum price below $3,600 as the crypto market experiences a decline in momentum?

With a sudden shift in sentiment during the day, Ethereum is approaching the $3,600 support level. After a 2.41% decline in the last 24 hours, Ethereum’s market cap has fallen to $435 billion.

As Bitcoin tests $95,000 support, the question is whether the sudden loss of momentum in the crypto market will push Ethereum below $3,600? Let’s find out.

Ethereum warns of channel collapse

On the 4-hour chart, Ethereum price action shows a rising channel pattern. Currently, the price trend shows that the uptrend is failing to break the upper resistance trendline, resulting in a negative cycle.

The price of ETH has fallen from the 24-hour high of $3,762 to the current market price of $3,619. It recorded a 24-hour low of $3,582. The ETH price trend is showing low price rejections from the local support trendline, indicated by the long tails in the 4-hour candles.

The MACD and signal lines have diverged negatively, increasing the likelihood of a bearish outcome. Additionally, the MACD indicator’s bearish histograms are increasing, maintaining a sell signal for Ethereum.

Ethereum ETFs reinforce bullish sentiment

The Ethereum ETF market saw a positive bounce last week, supporting the potential for a bullish recovery. Between November 25th and 29th, US-based spot Ethereum ETFs recorded a net inflow of $467 million.

At the top, BlackRock’s ETF recorded a net inflow of $300 million last week, followed by Fidelity with a net inflow of $120 million. As Ethereum ETFs continue to see increasing inflows, this trend is expected to boost demand for ETH in the crypto market.

Ethereum price targets

Currently, the chances of sustaining bullish momentum above the support trendline are limited as Bitcoin faces increased supply pressure. The immediate support below the rising trend line is the $3,570 pivot level.

However, the increased supply suggests a possible downtrend, with the next test being the S-1 pivot support at $3,392.46. If the broader market recovers and Ethereum manages to maintain dominance above the $3,600 level, the next resistance lies in the supply zone, around $3,740.

For the uptrend to continue, Ethereum price needs to break the trendline of the upper resistance, increasing the probability of recapturing the $4,000 price point.