Quick Takeaways
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Current Price Movement: Ethereum is trading at $3,130, down 11% in the last 24 hours, as it tests a crucial support level at the weekly 50 EMA, determining its trend strength.
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Critical Technical Levels: The price is contained within a narrow range of $3,350 to $3,675, with analysts predicting a potential 5% move following a clear breakout in either direction.
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Double Bottom Pattern: A potential double bottom near $3,100–$3,200 could lead to a significant upward move, reminiscent of previous patterns from 2020, but failure to hold may indicate further declines.
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Market Sentiment & Withdrawals: Large-wallet withdrawals from exchanges signal possible long-term positioning, while a weak daily close raises concerns of continued bearish pressure, with $2,800 as a potential target if recovery fails.
Ethereum (ETH) Near Collapse? Key Support Under Pressure After 10% Drop
Ethereum is facing critical support challenges as it drops to $3,130. This decline represents an 11% fall within just 24 hours. Analysts are closely observing this situation to determine if Ethereum can maintain its position or if further declines are imminent.
Currently, ETH tests the weekly 50 Exponential Moving Average (EMA). This level, which previously acted as resistance for more than a year, now presents crucial support. Merlijn The Trader calls this moment “make or break.” He emphasizes that if Ethereum fails to hold this support, momentum could shift downward. However, sustaining this level might lead to a resurgence in price.
In addition, ETH recently regained ground against Bitcoin by reclaiming the 50-week EMA on the ETH/BTC pairing. Historical data shows that similar movements in the past, particularly in 2021, often preceded substantial upward trends for Ethereum.
The current price of Ethereum resides within a narrow band of $3,350 to $3,675. This range has persisted across multiple sessions, with the 200-day EMA acting as a significant indicator. Daan Crypto Trades notes that a break from this tight range could trigger a price movement of over 5%. Yet, for any breakout to be valid, it must be decisive, not just a temporary spike.
Recent analyses indicate Ethereum might be forming a double bottom pattern around the $3,100–$3,200 area. This pattern arises after a 36% correction and resembles structures observed during prior market cycles. GalaxyBTC mentions that if ETH bounces from this level, it might signal a continuation of bullish trends seen in 2020.
However, not all news is positive. CryptoWZRD reported that Ethereum closed the previous day in a bearish state, increasing concerns of further weakness. If the support at $3,230 fails, a drop to $2,800 could follow. Currently, analysts note a lack of bullish momentum—especially from Bitcoin—to push Ethereum upwards.
Interestingly, large wallets are withdrawing Ethereum from exchanges like Binance, reducing immediate availability in the market. This trend suggests a long-term investment strategy, with fewer coins on hand for quick trades.
As Ethereum navigates this volatile landscape, its ability to recover from this pressure could have far-reaching implications. Whether it maintains its current support or faces a more significant decline remains to be seen, but all eyes are on this increasingly pivotal moment for one of the leading cryptocurrencies.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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