Ethereum Plummets! Price Drops Sharply to $3,197, Future Trends Full of Uncertainty

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Ethereum (ETH) has recently experienced a dramatic price drop, swiftly retreating from a peak of over $4,000 to $3,197. This severe adjustment has put Ethereum in a tough spot, making it even more challenging to break through the $4,000 mark again and regain its 30% value.

Currently, ETH has fallen below several important support levels, including the 50 EMA, which was a strong bullish signal before the recent sell-off. The breach of this support level indicates a significant weakening of Ethereum's upward momentum, and market sentiment has turned pessimistic. Additionally, the trading volume that has increased alongside the sell-off further exacerbates market concerns, showing that investors are actively participating in the downward process.

The next key support level is at the 100 EMA ($3,033). If Ethereum cannot maintain this support, it may further fall below the psychological threshold of $3,000. To restore investor confidence and lay the groundwork for a rebound, ETH must rise above $3,800.

The Relative Strength Index (RSI) is currently at 35, nearing the oversold territory, which may provide some hope for bulls, as historically, such oversold conditions often signal a potential rebound. However, any upward momentum may face strong resistance at the critical levels of $3,500 and $3,800.

From an overall market perspective, Ethereum's predicament also reflects the sentiment of the entire cryptocurrency market, especially against the backdrop of a tightening macroeconomic environment, where risk assets are generally under pressure.

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