ETH Price Drops To $3600 Amid Market Selloff: What’s Next?

• Ethereum price retested the lower trendline support and could see a rebound.
• Social sentiment for Ethereum is at its most negative since December 18, 2023—a classic bullish indicator.

Ethereum (ETH) faced overwhelming bearish pressure at the $4000 region. It showed signs of rejection and has fallen below the 20-day EMA mark.

Over the past week, the ETH price saw a more substantial dip of 5.25%, reflecting bears’ dominance on the chart. It tested the $4k resistance zone multiple times. However, the resistance level had proven crucial and challenging for the bulls.

The sentiment is turning bearish with the recent fade in its bullish momentum and a rejection from a key resistance level at $4000. At press time, the Ethereum price traded at $3716. It noted a decline of over 4.30% intraday and fell below the 20-day EMA mark.

Furthermore, if further bearish pressure is triggered, the token’s price could subsequently decline toward the $3400 level. However, its long-term uptrend was intact, and it may continue to trade in an uptrend, but the question arises- Can Ethereum Break $4000 by the end of 2024?

Ethereum Price Could Climb to $6000: Expert Insights

A recent Crypto Analyst Ali Martinez tweet highlighted a bullish stance on Ethereum. He mentioned that the ETH price has been moving higher within the rising parallel channel.

Once it breaks the $4100 resistance zone, the Ethereum price could increase toward the $6K mark in the following sessions. If this trend continues, surpassing $6,000 could become a reality. Furthermore, it can aim for higher Fibonacci extensions at $7,751.77 and beyond.

This alignment further suggested that Ethereum was well-positioned for continued gains. The gains could be seen provided market conditions remained favorable.

Ethereum’s Social Sentiment Outlook

The social volume for Ethereum was high throughout the year except for some times when it spiked over the roof—the highest moments aligned with the change in the ETH price.

On the other hand, volatility soared while weighted sentiment fell to a new low since December 18, 2023. That happened right before Ethereum pumped for another huge move.

When sentiment reached such levels, ETH went through a series of sharp price rises in the past. For instance, a 30% Ethereum price rally came with a similar sentiment drop in December 2023. This pattern suggested a potential for another rally.

Ethereum Price Prediction: Could a Bounce To $4k Be Imminent?

Despite the significant price drop of over 5% over the past seven days, the ETH price held gains of around $3600. That is the 50% Fib support zone. If the ETH price stabilizes gains and succeeds in gaining traction, it could see a rebound toward the $4k level.

The Relative Strength Index (RSI) line rests around the 50 neutral line, signaling consolidation in the short term. However, the Bollinger bands reveal expanding volatility. This happened as the price reverted from the upper Bollinger band and revisited the Bollinger band.

Bulls have remained resilient and could lead to bullishness shortly until they stop the $3400 barrier. However, bulls must break the $4K resistance zone to extend the upward movement ahead.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.