- Ethereum price dips by 2.50% amid broader market crash, sparking concerns of a drop to $3,000.
- Despite recent setback, some investors hopeful for long-term gains, citing potential for a bullish trend triggered by Bitcoin Halving.
- ETH finds support at $2,850 but faces resistance; mixed signals from technical indicators add to market uncertainty.
Ethereum, the largest altcoin by market capitalization, was not immune to the recent crash, with the ETH price declining by 2.50%. Concerns about a potential drop to $3,000 have arisen due to this recent setback and broader market fears of an intense correction.
Despite the current downturn, some investors remain optimistic about Ethereum’s long-term price trend. The history of Bitcoin Halving bringing an altcoin season has teased the possibility of a future bull run.
With a market cap of $382 billion, Ethereum has seen an 18% drop over the past few weeks. However, the ETH price has found support at the 50% Fibonacci level, around $2,850.
The weekly chart’s consolidation between the 50% and 61.80% Fibonacci levels has been extended by the most recent downturn. A possible bullish break is suggested by the smaller price rejection from the 50% Fib level, which results in a sustenance above $3,000.
Can Ethereum pick up pace?
The price of ETH is currently trading at $3,140 with an intraday Doji candle, which illustrates the erratic nature of the altcoin. Ethereum might be able to resume its upward trend if the market is able to avert any more losses.
Technical indicators paint a mixed picture for Ethereum. The bearish crossover in the MACD and signal lines in the weekly chart is a result of the recent pullback phase. However, a bounce back from the 50% Fib level in ETH price could restart the positive trajectory.
The price of ETH might break over the $3,265 overhead resistance and indicate a breakout entry opportunity if the Ethereum bull run continues. This possible bull run might test the strong $4,000 resistance level, leading to a 25% increase.
On the other hand, the chances of a drop to $3,000 are minimal but still concerning for investors. The current market conditions have created a sense of uncertainty, leaving investors to weigh the potential outcomes for Ethereum’s price action.
