The price of Ether decreased to $2,800 on Monday, unable to maintain its $3,000 support level as a surge of interest in a potential rate hike from the Bank of Japan unsettled investors. Alongside this, mixed signals from technical and onchain data have raised questions about Ether’s capacity to resist ongoing price declines.

Key points:

• Ethereum’s price fell 5.5% on Monday, dipping below $3,000 again due to fears of a Bank of Japan rate hike.
• Bulls need to break above $3,200 consistently for a significant recovery, while dropping below $2,800 would disrupt the macro bullish trend.
• Ether’s MVRV Z-Score is nearing an accumulation zone, indicating a potential local bottom.

Ether’s Price Positioned Between Critical Levels

Following an 18% uptick from a low of $2,620 on November 21, Ether struggled around the $3,000 psychological mark, now viewed as resistance. This shift was highlighted by That Martini Guy ₿, who commented on X about this important level:

“This was a major support that has currently flipped to resistance.”

Translation: This was a significant support level that has now turned into a resistance point.

Technicals show the 50-week and 100-week moving averages converging at this point, which accentuates its significance. That Martini Guy ₿ further elaborated,

“If $ETH breaks above this level and remains, we could see the price rebound into the mid-$3,000s throughout December!”

For those interested in resistance levels, the Glassnode cost basis distribution heatmap indicates additional resistance between $3,150 and $3,230, where approximately 5.1 million ETH were acquired.

Additionally, analysts are concerned that falling below $2,800 could lead to invalidation of the recent bullish trend. Daan Crypto Trades stated,

“That is a crucial area for the bulls to defend.”

In a positive note, inflows into US-based Ethereum spot ETFs totaled $312 million, lessening fears of an enduring sell-off. Meanwhile, global Ethereum ETPs recorded $309.1 million in inflows recently, demonstrating an ongoing demand from institutional investors despite the hurdles Ether faces.

The MVRV Z-Score indicates Ether might be nearing a local bottom, correlating with previous instances that preceded significant price increases. This could suggest Ethereum is undervalued, with projections exceeding $4,000 in the future.

Note: This report does not constitute investment advice. All financial activities involve risk, and it is essential for readers to conduct their own research before making decisions.