The price of Ethereum (ETH) is currently facing a significant downturn, with the price rapidly approaching the crucial support level of $3,051. This sharp decline has brought about increased selling pressure and a growing bearish sentiment in the market. Traders are now closely monitoring Ethereum’s behavior to determine whether it will stabilize or experience a further drop.
ETH’s price is currently trading at around $3,181, down by 5.05% with a market capitalization of over $382 billion and a trading volume of over $18 billion. In the past 24 hours, there has been a decrease of 5.25% in ETH’s market capitalization and a 74.43% increase in trading volume. A technical analysis on the 4-hour chart reveals that Ethereum is actively bearish and trading below the 100-day Simple Moving Average (SMA).
If Ethereum breaks below the $3,051 support level, it may move lower to test the $2,865 support level and potentially continue to test the $2,160 support level and other lower levels. However, if the price of ETH faces rejection at the $3,051 support level, it may begin to ascend toward the $3,360 resistance level. Subsequently, breaching this level could lead to a further climb to test the $3,659 resistance level and potentially higher levels beyond that.
The current sharp downturn in Ethereum’s price action has highlighted the presence of increased selling pressure and a growing bearish sentiment in the market. Traders and investors are actively monitoring the situation to determine whether Ethereum will stabilize or experience a further decline. The $3,051 support level is now a focal point, with its breach potentially leading to lower price levels, while its rejection could signal a move towards higher resistance levels. It is crucial for traders to carefully analyze the technical indicators and potential scenarios to effectively manage risk in this volatile environment.