The price of Ethereum has experienced a 2.50% decline amidst a broader market crash, causing worries of a potential drop to $3,000. This recent setback and the overall market fears of a significant correction have raised concerns among investors.
Despite the current downturn, some investors remain hopeful about Ethereum’s long-term price trend. They believe that the upcoming Bitcoin Halving could trigger a bullish trend, leading to future gains for Ethereum.
With a market capitalization of $382 billion, Ethereum has seen an 18% drop in the past few weeks. However, the price of ETH has found support at the 50% Fibonacci level, located around $2,850.
The recent downturn has extended the consolidation on the weekly chart between the 50% and 61.80% Fibonacci levels. There are indications of a possible bullish break, as the smaller price rejection from the 50% Fib level suggests that Ethereum could sustain above $3,000.
Currently, the price of ETH is trading at $3,140 with an intraday Doji candle, reflecting the volatile nature of the altcoin. If the market can avoid further losses, Ethereum might be able to resume its upward trend.
Technical indicators present a mixed picture for Ethereum. The bearish crossover in the MACD and signal lines on the weekly chart is a result of the recent pullback phase. However, a bounce back from the 50% Fib level in the price of ETH could restart the positive trajectory.
If the Ethereum bull run continues, the price of ETH might break over the $3,265 overhead resistance, providing an opportunity for a breakout entry. This potential bull run could test the strong $4,000 resistance level, resulting in a 25% increase.
Nevertheless, investors are still concerned about the possibility of a drop to $3,000, although the chances are minimal. The current market conditions have created a sense of uncertainty, forcing investors to carefully consider the potential outcomes for Ethereum’s price action.