Ethereum Faces Sharp Decline As ETH Targets $3,051 Support Level
July 04 2024 - 7:00AM
NEWSBTC
Ethereum (ETH) is experiencing a significant downturn, with its
price rapidly approaching the crucial support level of $3,051. This
sharp decline highlights increased selling pressure and growing
bearish sentiment in the market. As Ethereum nears this
critical threshold, traders are closely monitoring its behavior for
signs of either a stabilization or a further drop. The $3,051
support level is now a focal point, determining the short-term
direction of Ethereum’s price action and potentially setting the
stage for future movements in the cryptocurrency market. This
article aims to analyze the sharp decline affecting the digital
asset and its impact on the cryptocurrency’s price as it approaches
the $3,051 support level. It also seeks to provide traders and
investors with a comprehensive understanding of the current
situation, potential scenarios if the support level holds or
breaks, and strategies for managing risk in this volatile
environment. ETH’s price is currently trading at around $3,181 and
down by 5.05% with a market capitalization of over $382 billion and
a trading volume of over $18 billion as of the time of writing. In
the past 24 hours, there has been a decrease of 5.25% in ETH’s
market capitalization and a 74.43% increase in trading volume.
Technical Indicators Pointing To A Decline For Ethereum A technical
analysis of ETH’s price action on the 4-hour chart reveals that the
crypto asset is actively bearish and trading below the 100-day
Simple Moving Average (SMA). Ethereum has been consistently bearish
since after breaching the $3,360 mark and is currently heading
toward the $3,051 support level. Also, an analytical view of the
4-hour Composite Trend Oscillator shows that the price of ETH may
continue its bearishness as both the signal line and the SMA of the
indicator have dropped below 50% and are attempting a move into the
oversold zone. On the 1-day chart, the crypto asset has made a
sharp drop below the 100-day SMA and is attempting a break below
the bullish trend line while dropping toward the $3,051 support
level. Finally, on the 1-day chart, the composite trend oscillator
indicates a further bearish move of ETH as the signal and the SMA
of the indicator are both trending in the oversold zone. What If
$3,051 Support Fails? Analyzing potential outcomes if Ethereum
breaks through the $3,051 support level reveals that if the digital
asset breaks below this level, it may move lower to test the $2,865
support level and probably move on to test the $2,160 support level
and other levels below if the price breaches this level. However,
if the price of Ethereum faces rejection at the $3,051 support
level, it will begin to ascend toward the $3,360 resistance level.
Should the asset breach this level, it may continue to climb to
test the $3,659 resistance level and possibly move on to test other
higher levels if it breaches the $3,659 level. Featured image from
iStock, chart from Traadingview.com
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Oct 2023 to Oct 2024