Is Ethereum In Danger? Analyst Warns Of Bearish Future If ETH Drops Below This Level
April 02 2024 - 4:00PM
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Ethereum (ETH) showed a notable performance throughout March. The
second largest cryptocurrency hit $4,000 twice and seemed ready for
lift-off to a new all-time high (ATH) while the whole crypto market
soared. Quarter one (Q1) 2024 closed with important achievements
for the crypto community. However, as Q2 started, Bitcoin began a
correction that dragged Ethereum and the rest of the crypto market.
Related Reading: Investor Alert: Ethereum Q2 Potential Promises
Double-Digit Gains – Analyst Are Ethereum Bulls In Problems? The
king of altcoins has registered red numbers for the past two days.
ETH’s momentum recovery after the market slowdown was halted after
the token followed BTC and the rest of the market. On Monday,
crypto analyst Ali Martinez expressed concerns about Ether’s
future. He suggested investors should “always be prepared for the
best and the worst” scenario. Martinez deemed “breaching the $3,400
support level” as the most brutal scenario for the second-largest
cryptocurrency. This move would confirm a bear pennant pattern that
formed on the daily chart. If confirmed, the bearish formation
could trigger ETH’s price to face a “major correction,” according
to the analyst. The correction could make Ether’s price dip to
$2,800. Martinez reaffirmed his analysis after Ethereum continued
to dip in the early hours of Tuesday. After the token fell under
the support level mentioned above, the analyst asserted that
falling under $3,460 was a problem for the bulls. #Ethereum
dropping below $3,460 is a problem for the bulls! Given the lack of
support, it increases the chances for a further $ETH correction
toward $2,850 or lower. pic.twitter.com/dFpnpZtBVM — Ali
(@ali_charts) April 2, 2024 “Given the lack of support,” failing to
regain this support zone could trigger further corrections for ETH
that could go even lower than the previously forecasted $2,800.
According to the In/Out of the Money Around Price (IOMAP) chart
shared by Martinez, Ethereum shows a potential price support
between $2,846 and $2,905, with over 1.64 million ETH bought by
1.99 million addresses at this level. Nonetheless, the chart also
displays that an ETH rally could face resistance at $3,457 and
$3,557. ETH’s Follows Bitcoin’s Correction Ethereum behaved no
differently than the rest of the crypto market. Bitcoin’s
correction saw its price drop from the $70,000 mark to hover
between the $65,000-$64,000 price range. The flagship
cryptocurrency shredded 7.1% of its price in the last 24 hours.
Similarly, Ethereum’s red numbers show a 7.4% drop from yesterday
and a 7.5% decrease on Monday. April fools shakeout to start the
quarter. Time to get to work. Let's get this bread boys 🤝
pic.twitter.com/0458Qvrr4F — Jelle (@CryptoJelleNL) April 1, 2024
In the weekly and monthly timeframes, the king of altcoins has
decreased by 9.2% and 3.4%. However, its 3-month chart shows
green numbers, with a positive 39.74% increase since 2024 started.
Despite the negative performance, Ethereum’s daily trading volume
increased a remarkable 80.80%, with over $22.5 billion traded in
the last 24 hours, suggesting a rise in market activity. At the
time of writing, ETH was trading at $3,283. Related Reading: Brace
For Market Impact: Ethereum Open Interest Has Reached A New
All-Time High Ethereum is trading at $3,238 in the one-day chart.
Source: ETHUSDT on Tradingview.com Featured Image from
Unsplash.com, Chart from TradingView.com
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