The cryptocurrency markets are crashing! Bitcoin price is falling! Ethereum price is following suit, approaching key support levels. These popular tokens are facing huge selling pressure, with the global market capitalization falling below $2.18 trillion. Meanwhile, ETH price, which briefly held firm above $3,300, has plunged more than 5%, sparking speculation of a drop below $3,000 in the coming days.

ETH price has officially returned to the starting point of the “ETF pump”, which indicates that traders have begun to “sell the news”. Historical chart patterns indicate that the second-largest coin is subject to bullish influence and could spark a strong rally. However, sellers have already capitulated to the market, so it is not expected that buyers will step in and resume new upward momentum until prices find a bottom.

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Will ETH Price Drop Below $3,000?

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Positions exceeding
45 days later, the ETH price fell below the critical support area between $3,328 and $3,289. These levels had previously provided a solid foundation, and a break below them caused the price to drop to nearly
Therefore, a similar trading setup seems to have formed and if the bulls fail to defend the local support at $3,166, it could drag the price towards $3,000.
However, a bearish trade setup is expected to come into play as the Ichimoku Cloud suggests that the rebound trend shows the end of the bullish trend and is about to turn bearish.

On the other hand, DMI
The +Di and -Di diverged just before the bullish crossover, with beam waves circulating on the platform. Therefore, ETH price is expected to fall below the major support level and reach the previous low of 2900
However, the ADX remains neutral after turning down from its highs, which shows that the rebound has lost strength, forcing the price to remain in a downward consolidation without any significant movement.

Moreover, ETH/BTC is also maintaining quite strong momentum, so it could be a good time to enter before the ETF launches. Such a move could even strengthen the bullish momentum, which could pave the way for new highs before the end of 2024.