Ethereum’s Bearish Trend Deepens Amid Market Turbulence
Ethereum’s price has plunged over 15%, falling below the crucial $3,000 range and signaling a bearish trend. This decline was exacerbated when a major whale sold 26,600 ETH, worth over $82.5 million, to repay debt on Aave. This sale initially caused a sharp 3% drop in ETH’s value. However, the whale later re-entered the market at a lower price point, borrowing significant funds to take advantage of the dip.
Amid the recent market turmoil, Ethereum has struggled to regain its footing after the significant drop below key support levels. The broader market downturn, triggered by Bitcoin payouts from the Mt. Gox bankruptcy, flooded the market with additional supply and exerted downward pressure on prices across various altcoins.
In the past 24 hours alone, liquidations totaling $639.27 million underscored the heightened volatility and risk exposure within the crypto market, with $161 million of ETH being liquidated.
Will Ethereum Price Recover to $3,000?
Ethereum’s price was rejected at a descending trendline on Monday, resulting in a 19% decline over three days. By Thursday, it had dropped below $3,240, and today ETH approached its May 1 low of $2,817.
Currently, Ethereum shows signs of stabilization, with prices attempting to reclaim the $2,900 threshold. At the time of writing, ETH is trading at $2,933, with a market cap of $350 billion. The daily trading volume surged by over 49%, likely due to increased investor activity.
Ethereum Price Analysis: Key Levels to Watch
If Ethereum closes below its May 1 low of $2,815, it could drop further to around $2,650, representing a 6.5% decline. The relative strength index (RSI) on the daily chart suggests bearish momentum, indicating the potential for continued decline.
Conversely, a daily candlestick close above $3,500 would signal bullish strength, potentially pushing Ethereum up 6% to revisit its high of $3,750. However, Ethereum is likely to consolidate between $2,900 and $3,300 in the near term.