• Ethereum protocol experienced a significant fee drop in the last 24 hours. 
  • The cryptocurrency’s daily trading volume surged by 63.50% as per CMC data.

Over the weekend, the crypto market decided to take a trip down the bearish lane. This was initiated when Bitcoin lost its $102K support following which the altcoins fell and huge liquidations ensued, alarming investors. While the community sentiment has gone red, a particular BTC prediction by Arthur Hayes has caught attention. 

Notably, the leading altcoin and the somewhat missing-in-action one, Ethereum has yet again succumbed to bears. In the last 24 hours, ETH factored in a 5.77% loss causing it to freefall to the $3.1K level. 

Moreover, according to DeFillama data, the Ethereum protocol fell below the Top 10, in 24-hour fees. This in turn would have fuelled the bears that seemed to be intensifying their hold on the altcoin. At the time of writing, Ethereum was trading at $3,151 as per CMC data . 

Over the past weeks, the cryptocurrency attempted to recover to the $3.5K level. On January 17, it even reached the level, as the price movement showed a high of $3,525. However, the past two days’ ETH movements have brought the altcoin back to its previous support levels. 

Will Ethereum Price Fall Further? 

On analyzing its technical indicators Ethereum’s bull power indicator value stands at 1.52. However, its bear power indicator value stands at -6.26 highlighting the clear bearish dominance as per TradingView data . 

Bears Reclaim Ethereum Amid Protocol Fee Drops and Market Dip image 0 ETH/USDT Daily Price Chart (Source: TradingView )

Moreover, its Chaikin Money Flow (CMF) value stands at -0.04. This indicates the diminishing capital flow into the digital asset. With such dips in both blockchain fees and price Ethereum is currently experiencing a negative sentiment. 

As a result, it can be expected to fall further from its current trading levels. In such a case, its next support levels are $3,110 and $2,981. Meanwhile, particular altcoins such as Rune and Mantra have maintained their bullish signs despite bear markets. 

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