Ethereum Loses Crucial Support, May Drop to $3,000 Low Point

Long-Term Ethereum Price Analysis: Bearish Outlook

Bulls and bears have engaged in a price battle for market control. After two weeks of intense competition, the bears gained the upper hand by breaking below the 50-day moving average and the critical support level at $3,400. This led to the cryptocurrency price falling below the moving average, touching a low of $3,231, and then retracing. Ethereum (ETH) has seen some upward correction but stalled around the $3,431 high point. On the positive side, if the bulls manage to break above the resistance at $3,400 and the 21-day moving average, Ethereum could regain momentum. However, failure to overcome the $3,400 resistance might push ETH back down to the $3,000 and $2,825 lows. As of writing this article, Ethereum’s value stands at $3,369.

Ethereum Technical Indicators

The price is currently below the 21-day simple moving average (SMA) and the 50-day SMA, with both SMAs previously trapped between moving averages. This suggests further downside potential while in a bearish trend. On the 4-hour chart, the moving averages show a bearish crossover, signaling a downtrend.

Key Levels:

• Resistance: $4,000 and $4,500
• Support: $3,500 and $3,000

What’s Next for Ethereum?

On the 4-hour chart, Ethereum remains in a downtrend, trading below the moving averages. The recent price range for ETH was between $3,400 and $3,640. The bears broke below this range, pushing the price down to $3,233. Ethereum’s narrow range between $3,200 and $3,400 has stalled the uptrend. A rejection from recent highs could lead to further downside.

Sentiment: Negative