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- Ethereum price has dropped by 24% from its recent high.
- The 24-hour trading volume has increased by 41% to $73.70 Billion.
Since November, Ethereum‘s (ETH) price has been in a bullish trend and touched the $4k mark. Amid this bull run, ETH price triggered a pullback and attempted to surpass the $4K mark but couldn’t. However, it has failed to hold and witnessed massive selling. The price dropped below the 20-day EMA and the $3500 support level.
On a wider time frame, sellers have shown their domination in the supply zone and heading toward the demand zone. It has covered almost half of the distance and dropped to the 200-day EMA. According to the analysts, sellers have been dominating and another bearish momentum can be anticipated.
Bears Dominating Bulls; Another Bearish Leg?
Trader Koala is a crypto analyst who suggests the Ethereum price could fall more. He claims that the price is on the support level but it could be a foolish decision to go long on ETH.
At press time, sharp selling was experienced and the support levels had become easy to break. It would be a wise decision to wait for the real bottom to make a long position.
Can ETH Price Defend the $3K Mark
Ethereum crypto was trading at 3,227.00 at press time, it dropped by 5.53% intraday. The market capitalization was $389.21 Billion and the 24-hour trading volume was $73.7 Billion.
If the price defends the $3500 support level, it could attract buyers. If the price forms a bullish candlestick pattern on the support level, a bullish trend could follow. Moreover, if it exceeds the 20-day EMA, strong buying momentum could be seen. Once the price starts trading over the $4k mark, buyers might eye a new ATH.
Alternatively, if the price of Ethereum slips below the support level of $3500, sellers might dominate further. Below the 200-day EMA, the trend could turn bearish. Also, if the price holds below this EMA, selling pressure could crack the $2000 support mark.
Turning to the technical indicators, the RSI has dropped sharply and headed toward the oversold zone. The MACD and the Signal line are falling and eye for the Zero line. The histograms have flipped to red which showcases the bearish momentum.
Ethereum Price Prediction and Its Forecast
Ethereum (ETH) has experienced a significant downturn, dropping 24% from its recent highs. The increase in trading volume signals heightened market activity, but this has not translated into positive price momentum.
The failure to maintain the $4,000 level and the breach of key support at $3,500 indicate a bearish sentiment among traders. If the price can hold above $3,500, there may be opportunities for a rebound, particularly if a bullish pattern emerges.
Conversely, slipping below this support could lead to further declines, potentially targeting the $2,000 mark if the 200-day EMA is breached. Technical indicators support this bearish outlook, with the RSI nearing the oversold zone and MACD indicating a lack of momentum. Overall, traders should remain cautious as the market navigates these critical levels.
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.
