Is ETH in danger of falling to $3000 or will the bulls wake up? (Ethereum Price Analysis)

Ethereum price has landed in a decisive and substantial support region after a brief consolidation correction stage, with potential for a bullish reversal.

However, if Ethereum sellers breach this pivot, there is likely to be a cascade in the market.

By Shayan

The daily chart

A closer look at the daily chart shows that Ethereum has reached a key support region after a brief consolidation correction stage. This region spans the price range between the Fibonacci levels of 0.5 ($3421) and 0.618 ($3289), aligning with substantial support from the 100-day moving average ($3412). T

The alignment of these support indicators highlights the strength of this critical level and the prevailing demand at this juncture, which could further curb downward pressure.

A battle between buyers and sellers is expected in this pivotal price range, leading to increased market volatility and possible liquidations. The outcome will likely determine Ethereum’s next trend. If sellers outpace buyers and breach this crucial support region, a cascade towards the 200-day moving average at $2,996 is imminent.

Source: TradingView The 4-hour chart

On the 4-hour chart, Ethereum formed a head and shoulders pattern, which led to increased selling activity and a break below the neckline of the pattern.

This development and a bearish divergence between the price and the RSI indicator have added to the bearish momentum, resulting in a significant downside move. After that, Ethereum has formed a descending flag pattern, a well-known bullish continuation pattern if it breaks from the upper limit.

The price is currently hovering around a critical and decisive support region marked by Fibonacci retracement levels of 0.5 ($3420) to 0.618 ($3289) and the lower limit of the flag. This area is experiencing heightened volatility and fluctuations.

If the sellers break this crucial support, an impulsive downtrend targeting the $2.9K support is expected. Conversely, if sufficient demand returns and reduces the existing supply, a reversal towards the upper limit of the flag at $3.6K will likely occur.

Source: TradingView

By Shayan

Ethereum price has seen increased selling pressure near the $4,000 mark, leading to a significant decline. This is likely due to participants’ aggressive interest in opening short positions near this pivotal level. Analysis of potential liquidation levels is crucial in determining mid-term price targets.

As the chart demonstrates, a significant amount of liquidity resides above the crucial $3.9K mark, which could represent notable short buy stop orders around this critical juncture. This region of liquidity is likely to be the primary target for buyers if demand returns to the market and the price experiences a bullish reversal near the $3,000 threshold.

Reaching this crucial range of liquidity would likely lead to greater market volatility and potentially trigger a short event, where short positions will be forced to cover, driving the price higher. However, if the selling pressure continues and Ethereum does not recover higher levels, the price may continue to consolidate or decline.

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