$ETH NEXT STOP AT $4,000?

The price of Ethereum has fallen precipitously from its recent peak of over $4,000 to $3,197. The current state of affairs presents a difficult scenario for the second-largest cryptocurrency, making it difficult for it to regain the $4,000 mark and recover more than 30% of its value. Ethereum is now below important support levels, including the 50 EMA, which was once a powerful bullish indicator as a result of the recent sell-off.

When this level is broken, it indicates that ETH has lost a lot of momentum, which puts the market in jeopardy. The significant trading volume that coincided with the sell-off raises additional concerns because it implies that the market is actively participating in the decline. At $3,033, the 100 EMA provides the next important level of support.

Ethereum may experience additional drops and possibly test the psychological $3,000 barrier if it is unable to maintain this line. To restore investor confidence and pave the way for a possible rally, ETH must rise back above $3,800. At 35, the Relative Strength Index (RSI) suggests that Ethereum is getting close to oversold territory. Bulls may find some hope in this since relief rallies have historically resulted from similar circumstances.

Any upward movement, though, is probably going to encounter strong opposition at the $3,500 and $3,800 levels. In a larger sense, Ethereum's market difficulties reflect the mood of the market as a whole, with riskier assets under pressure due to tightening macroeconomic conditions.