In the last 24 hours, there’s been a big increase in people wanting to sell Ethereum (ETH) instead of buying it, which shows a lot of negative feelings about its future. Because of this, the price of ETH might drop below $3,000 soon.
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After bouncing back last week and reaching over $3,600, Ethereum (ETH), the second-largest cryptocurrency, is now experiencing a lot of selling. Over the past two days, the price of ETH has dropped below $3,400 again, as the bears take control.
Ethereum Faces Bearish Challenges
Concerns are rising as Ethereum drops below the critical support level of $3,460, according to crypto analyst Ali Martinez’s analysis. This development poses a challenge for bullish sentiment in the market and could lead to further downward movement in Ethereum’s price.
Without strong support at this level, the likelihood of Ethereum’s price continuing to correct towards $2,850 or even lower becomes more apparent.
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Courtesy: Ali Martinez
Recent market developments, as reported by QCP Capital, indicate notable activity within the last 24 hours, particularly in Ethereum (ETH) options trading. There’s been a rise in interest in selling calls and buying puts for both cryptocurrencies.
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This surge in options trading has exerted downward pressure on the spot price of ETH and has also kept implied volatilities at high levels. Notably, there’s been heightened demand for puts compared to calls in the front-end of Ethereum options, resulting in a significant downside risk reversal skew of -5% in April.
Also Read: LSE Introducing Crypto Investments on May 28th!
Ethereum’s Resistance and On-Chain Strength
In terms of resistance, Ethereum faces immediate hurdles around the $3,400 mark, aligning with the 23.6% Fibonacci retracement level from recent price movements. A significant obstacle lies at approximately $3,420, corresponding with both a trend line and further resistance at $3,450. Breaking past these levels could lead to a test of the 50% Fibonacci retracement level.
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Additional resistance is anticipated near $3,520, accompanied by the 100-hourly Simple Moving Average (SMA). A successful breach above this level might signal bullish momentum, with potential targets at the $3,650 barrier.
Despite these challenges, Ethereum’s on-chain indicators demonstrate strength. The number of non-zero Ethereum addresses has surged to a new all-time high in recent weeks, suggesting underlying support for the cryptocurrency.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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