đ Why is Ethereum (ETH) dropping today?
Ethereum is currently trading around $4,268, showing a slight pullback after its recent rally. But why is ETH facing downward pressure today? đ€
đč Profit-taking & overbought signals â After the strong rally, many traders are taking profits. Technical indicators like RSI showed Ethereum was overbought, leading to a natural correction.
đč Resistance near $4,500 â ETH is struggling to break above this psychological level, creating short-term selling pressure.
đč Low liquidity on exchanges â While long-term holders keep accumulating, the reduced ETH supply on exchanges makes the market more volatile in the short term.
đč General market sentiment â Crypto markets are consolidating after strong gains, and ETH is no exception.
⥠Bottom line:
Todayâs dip looks more like a healthy correction than a trend reversal. If Ethereum can hold above $4,100â$4,200, the bullish momentum may continue in the medium term.
đ Do you see this as a dip-buying opportunity, or are you waiting for a deeper correction?