Ethereum, one of the top cryptocurrencies in the market, has experienced a significant 15% drop since reaching a high of $2,729 last Friday. This unexpected downturn has left analysts and investors feeling frustrated as they had anticipated a continued bullish trend for Ethereum. However, the cryptocurrency has struggled to maintain its upward momentum, leading to concerns among market observers.
There is mounting speculation that Ethereum could face a deeper decline, potentially dropping to yearly lows around $2,150 if the current support level fails to hold. This uncertainty has unsettled the market, with Ethereum’s price sending mixed signals and creating fear among investors.
As analysts closely monitor Ethereum’s next moves, the coming days are expected to be crucial for the cryptocurrency’s price action. Investors are bracing for heightened volatility in response to the shifting market conditions, eagerly awaiting clarity on the direction Ethereum will take.
Currently, Ethereum is trading at a critical juncture, with its price action over the next few days expected to define its trajectory in the coming week. The cryptocurrency is facing a make-or-break moment, with analysts watching closely to see if it can maintain its position as the second-largest cryptocurrency by market cap. Failure to hold above key support levels could signal a broader market decline.
One top analyst, Carl Runefelt, has highlighted the importance of a trendline supporting ETH price in his recent technical analysis. He warns that Ethereum’s price could plummet significantly if it fails to hold this trendline, with $2,150 identified as the next potential target if the support is breached.
The recent price action has disappointed bulls, as Ethereum has failed to establish a higher high above $2,820. Losing crucial support levels, including the 4-hour 200 exponential moving average (EMA) at $2,542 and the simple moving average (MA) at $2,466, has raised concerns about further downside risk for the cryptocurrency.
For Ethereum to regain momentum, it must break above the 4-hour 200 EMA and the 4-hour MA and hold these levels as support. Reclaiming these indicators would signal renewed strength and potentially pave the way for another attempt to increase prices. However, if Ethereum fails to recover these levels, a deeper correction is likely, with key support around $2,100 becoming the next target.
Investors are closely monitoring these critical levels, as the next few days will be decisive in determining whether Ethereum can stage a recovery or continue its downtrend. As the market remains on edge, uncertainty and volatility are expected to persist until Ethereum’s path forward becomes clearer.