Ethereum (ETH) is trading lower this Thursday (3), having lost important support levels in the process.

ETH fell 4.4% in 24 hours alone, with its price falling below the $2,500 level – something that had not happened since September 18.

Is the worst yet to come or has cryptocurrency hit a price bottom?

Ethereum in the red

Ethereum, like Bitcoin and the broader cryptocurrency market, has been hit hard by the escalating confrontation between Israel and Iran. The threats and attacks between the two countries have further heightened fears of a Middle East war, sparking a wave of panic in major capital markets around the world.

With this, ETH has accumulated a devaluation of more than 10% in the accumulated week. At the same time, the asset also fell below a short-term wedge on the 4-hour chart.

Ethereum (ETH) Chart on TradingView

Despite the current bearish scenario, there are reasons to believe that the cryptocurrency has reached a bottom and could rise again soon. Firstly, ETH has formed a hammer candle on this timeframe. This candle pattern is known to anticipate trend reversals.

Additionally, the Relative Strength Index (RSI) on the 2-hour chart has formed a bullish divergence. A bullish divergence on the RSI occurs when an asset’s price is making new lows while the indicator is rising. This shows that sellers are losing momentum, which increases the chances of a price reversal.

Ethereum (ETH) Chart on TradingView

Read more: Ethereum ETFs – Understand what they are and how they work

However, to confirm this thesis, Ethereum needs to rise above $2,400. On the other hand, falling below the hammer candlestick wick at $2,300 would indicate that the downtrend could continue until $2,200.

The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.