Ethereum
Ethereum Faces Sharp Drop as ETH Targets $3,051 Support Level — TradingView News
Ethereum (ETH) is currently experiencing a significant decline, with its price rapidly approaching the crucial support level at $3,051. This sharp decline highlights increased selling pressure and growing bearish sentiment in the market.
As Ethereum approaches this critical threshold, traders are closely monitoring its behavior for signs of stabilization or further decline. The $3,051 support level is now a focal point, determining the near-term direction of Ethereum price action and potentially paving the way for future movements in the cryptocurrency market.
This article aims to analyze the sharp decline affecting the digital asset and its impact on the cryptocurrency price as it approaches the $3,051 support level. It also aims to provide traders and investors with a comprehensive understanding of the current situation, potential scenarios if the support level holds or breaks, and risk management strategies in this volatile environment.
ETH price is currently trading at around $3,181 and is down 5.05% with a market cap of over $382 billion and a trading volume of over $18 billion at the time of writing. In the last 24 hours, ETH market cap has decreased by 5.25% and the trading volume has increased by 74.43%.
Technical indicators point to decline for Ethereum
A technical analysis of ETH price action on the 4-hour chart reveals that the crypto asset is actively bearish and is trading below the 100-day simple moving average (SMA). Ethereum has been consistently bearish since breaking above $3,360 and is currently heading towards the $3,051 support level.
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Moreover, an analytical view of the 4-hour Composite Trend Oscillator shows that ETH price could continue its downtrend as the signal line and SMA of the indicator have fallen below 50% and are attempting to move towards the oversold zone.
On the daily chart, the crypto asset registered a sharp decline below the 100-day moving average and is attempting a break below the rising trend line while falling towards the $3,051 support level.
Finally, on the 1-day chart, the Composite Trend Oscillator indicates a further bearish move for ETH as both the signal and the indicator’s SMA are moving in the oversold zone.
What happens if support 3051 fails?
Analyzing the potential outcomes if Ethereum breaks the $3,051 support level reveals that if the digital asset breaks this level, it may decline to test the $2,865 support level and likely move on to test the $2,160 support level and other levels below if the price breaks this level.
However, if Ethereum price gets rejected at the $3,051 support level, it will start moving higher towards the $3,360 resistance level. If the asset breaks this level, it may continue to rise to test the $3,659 resistance level and possibly move to other higher levels if it breaks the $3,659 level.