All eyes are on you! Can ETH rise from the ashes above $3,000?
A closer inspection of the daily chart shows that after a lengthy corrective retracement near the key 100-day moving average at $3,386, sellers finally gained control, resulting in a break below the key 100-day moving average.
Given that the area was awash with buying interest and demand, the vulnerability resulted in a significant long liquidation cascade, accelerating the bearish momentum. As a result, the price plunged to and above the 200-day moving average at $3,096. This price action clearly indicates bearish sentiment in the market, with sellers taking the lead.
Ethereum is currently hovering near the key and decisive support area of $3,000 and is expected to undergo a period of consolidation before embarking on its next major move. A continuation of the bearish trend will become more likely if there is a pullback back to the broken 200-day EMA.
Ethereum price recovers to $3,500. If Ethereum can gain a foothold at the critical $3,200 level and continue its upward momentum and trend, then breaking through the important psychological and technical level of $3,500 will no longer be a distant dream.
We also cannot ignore another possible pessimistic scenario – a fall in Ethereum price to $2,000. If Ethereum price fails to hold on to the important defense line of $3,000, panic in the market may spread quickly, causing the price to drop sharply to $2,800.
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