As a seasoned crypto investor with several years of experience, I’ve seen my fair share of market volatility and price movements. The recent selling pressure on Ethereum has been concerning, with the breach of the 100-day moving average and subsequent decline toward the 200-day MA. However, I believe there is a significant support region in place that could lead to a temporary period of consolidation or correction.

Recently, there’s been a surge in selling on Ethereum, causing it to fall below its 100-day moving average. This downward trend has resulted in a significant drop, pushing the price closer to its 200-day moving average.

As a crypto investor, I’ve noticed that the current price level presents a strong support zone. This could potentially cause a pause or correction in the market’s uptrend, resulting in a short-term period of sideways movement before resuming its bullish momentum.

Technical Analysis

By Shayan

The Daily Chart

Examining the intraday price data more closely, it becomes apparent that following a prolonged phase of corrections around the significant 100-day moving average priced at $3386, market sellers managed to regain dominance and eventually pushed the price below this important threshold.

I analyzed the market situation and noticed significant buying activity and demand in this area. However, when a breach occurred, it triggered a chain reaction of long liquidations, intensifying the bearish trend. Consequently, the price dropped sharply towards the notable 200-day moving average of $3096 and eventually broke below it.

The price behavior in the market is signaling a strong bearish attitude, as sellers are in control. Nevertheless, Ethereum remains near the significant and pivotal support level of $3,000, where it may enter a phase of stabilization before making its next substantial move. In case a retreat to the breached 200-day moving average happens, the probability of the bearish trend continuing increases.

The 4-Hour Chart

On the 4-hour chart, after a stretch of sideways movement above the $3.3K support level, there was a significant surge in selling pressure that caused the price to drop below this important support area. This sudden decline marked the beginning of an impulsive downtrend, suggesting a long squeeze occurred in the continuous markets.

Ethereum has found solid footing around the significant support level of $3,000. This price point has proven effective in the past and could be teeming with buying interest, momentarily thwarting any bearish trends.

The RSI indicator has fallen below the 30 threshold, signaling a possible short-term correction or market pullback. As a result, it’s likely that the market will experience consolidation in the near term. This period of quieter price action gives the market a chance to recover and prepare for the next significant move. During this phase, look for corrective price movements within the range defined by the 0.5 and 0.618 Fibonacci levels.

Ethereum Price Analysis: ETH Holds at $3K but is Another Crash Imminent?

Sentiment Analysis

By Shayan

Recently, there has been an uptick in selling actions on Ethereum, causing its price to drop noticeably and approach the important $3K level of support.

It’s essential to identify the primary reasons for this price rejection in order to anticipate future price trends accurately. The enclosed chart delineates possible areas of liquidation within Ethereum’s price behavior, offering astute investors crucial information for devising mid-term strategies.

The chart indicates a notable liquidity pool below the crucial $3K. This pool is filled with sell-stop orders from aggressive long positions that contributed to a significant price surge in mid-May. If sellers push the price below the $3K support zone, a massive long-squeeze is expected. This would trigger the sell-stop orders, accelerating the bearish momentum. Traders should closely monitor the price action around the $3K support zone in the upcoming days to determine the cryptocurrency’s trend direction.

2024-07-07 10:53

Ethereum Price Analysis: ETH Holds at $3K but is Another Crash Imminent?

Technical Analysis

The Daily Chart

The 4-Hour Chart

Sentiment Analysis

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