Why did Ethereum suddenly plummet? Will the price test $2,800?
The cryptocurrency market has seen a sharp correction of 3.47% in the past 24 hours. In addition, the top crypto tokens have also shown similar price trends, breaking through their important levels.
In addition, the altcoin leader, Ethereum price, has seen its highest drop of about 8% among the top 10 cryptocurrencies by market capitalization.
After showing a neutral trend for about a week, the altcoin leader Ethereum price failed to break through its important resistance zone. This led to a 7.30% correction in the stock over the past day, with a volume of $20.662 billion and a change of 7.83%.
It is worth noting that the main reason for the decline in the price of Ethereum cryptocurrency is considered to be the situation of selling news, similar to what the crypto market experienced during the launch of the Bitcoin ETF in January this year.
The relative strength index (RSI) shows a sharp decline on the one-dimensional time frame, indicating an increase in selling pressure. In addition, the moving averages show a bearish convergence, indicating that the price will continue to lose momentum.
If the market regains momentum, the Ethereum token will be ready to test its resistance at $3,272.50. Moreover, if the bulls sustain the price at this level, it will set the stage for the ETH token price to test the overhead resistance at $3,700 in the coming weeks.
On the contrary, if the bears continue to dominate the cryptocurrency market, the Ethereum price will plummet to the support trendline of the triangle pattern. Moreover, if the bulls fail to sustain the price at this level, the altcoin leader will be ready to test its critical support at $2,870.
