Is Ethereum In Danger? Analyst Warns Of Bearish Future If ETH Drops Below This Level

In March, Ethereum (ETH) put in an impressive showing, reaching a price of $4,000 on two occasions. With the larger cryptocurrency market experiencing significant growth, Ethereum appeared poised to set a new all-time record high (ATH).

In the first quarter of 2024, the crypto community experienced significant milestones. Yet, as we entered the second quarter, Bitcoin initiated a downturn that affected Ethereum and the broader crypto market negatively.

Are Ethereum Bulls In Problems?

In simpler terms, Ethereum (ETH), often referred to as the “king of altcoins,” has shown a downturn with red numbers for the past two days. The initial bounce-back of ETH following the market lull was interrupted when it mirrored Bitcoin‘s and other coins’ declines.

On Monday, cryptocurrency expert Ali Martinez voiced apprehensions regarding Ether’s prospect. He advised investors to stay ready for both favorable and unfavorable outcomes.

Martez considered hitting the $3,400 mark as the harshest possibility for the second biggest cryptocurrency. Hitting this price would validate a bearish pennant formation observed on the daily chart.

Based on the analysis of the bearish pattern, there is a possibility of a significant decrease in ETH‘s price if the formation is validated. This drop could potentially cause Ether’s value to fall to around $2,800.

Martinez confirmed his assessment as Ethereum kept dropping in the wee hours of Tuesday. Once the token dipped below the previously indicated support level, the analyst warned that a drop below $3,460 would be challenging for the bulls.

If Ethereum falls beneath $3,460, this poses an issue for the bulls as there’s not enough resistance to prevent potential price decline. This decrease in support amplifies the likelihood of a more significant correction for ETH, potentially leading down to $2,850 or even lower prices.
— Ali (@ali_charts) April 2, 2024

If we don’t receive the necessary backing, not recovering this level could lead to additional declines for Ethereum, potentially dropping below the earlier projected price of $2,800.

Based on the IOMAP chart presented by Martinez, Ethereum has the possibility of being supported by a price range between $2,846 and $2,905. Approximately 1.64 million ETH have been purchased by over 1.99 million addresses at this price point.

Nonetheless, the chart also displays that an ETH rally could face resistance at $3,457 and $3,557.

ETH’s Follows Bitcoin’s Correction

In simple terms, Ethereum followed the trend of the larger crypto market. When Bitcoin experienced a correction, its price dipped from around $70,000 to fluctuate around the $65,000 to $64,000 price range.

In the past day, the leading cryptocurrency experienced a significant loss of 7.1%, while Ethereum followed suit with a 7.4% price decrease from the previous day and an additional 7.5% drop since Monday.

April fools shakeout to start the quarter.

Time to get to work. Let’s get this bread boys

— Jelle (@CryptoJelleNL) April 1, 2024

In the past week and month, Ethereum (or other chosen altcoin), which rules among them, has dropped by 9.2% and 3.4%, respectively. Contrastingly, its performance over the previous three months has been encouraging, registering a substantial increase of 39.74% since the beginning of 2024.

In spite of poor results, Ethereum experienced a significant surge in daily trading volume by approximately 80.80%, amounting to over $22.5 billion exchanged within the last day. This indicates an uptick in market activity. Currently, Ethereum is being traded at around $3,283 per unit.

Is Ethereum In Danger? Analyst Warns Of Bearish Future If ETH Drops Below This Level

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2024-04-02 23:10