Is Ethereum In Danger? Analyst Warns Of Bearish Future If ETH Drops Below This Level

By PR1ME at Tue, 02 Apr 2024 21:00:02 +0800 | Cryptocurrency Market News |

Is Ethereum In Danger? Analyst Warns Of Bearish Future If ETH Drops Below This Level

Ethereum (ETH) showed a notable performance throughout March. The second largest cryptocurrency hit $4,000 twice and seemed ready for lift-off to a new all-time high (ATH) while the whole crypto market soared.

Quarter one (Q1) 2024 closed with important achievements for the crypto community. However, as Q2 started, Bitcoin began a correction that dragged Ethereum and the rest of the crypto market.

Are Ethereum Bulls In Problems?

The king of altcoins has registered red numbers for the past two days. ETH’s momentum recovery after the market slowdown was halted after the token followed BTC and the rest of the market.

On Monday, crypto analyst Ali Martinez expressed concerns about Ether’s future. He suggested investors should “always be prepared for the best and the worst” scenario.

Martinez deemed “breaching the $3,400 support level” as the most brutal scenario for the second-largest cryptocurrency. This move would confirm a bear pennant pattern that formed on the daily chart.

If confirmed, the bearish formation could trigger ETH’s price to face a “major correction,” according to the analyst. The correction could make Ether’s price dip to $2,800.

Martinez reaffirmed his analysis after Ethereum continued to dip in the early hours of Tuesday. After the token fell under the support level mentioned above, the analyst asserted that falling under $3,460 was a problem for the bulls.

“Given the lack of support,” failing to regain this support zone could trigger further corrections for ETH that could go even lower than the previously forecasted $2,800.

According to the In/Out of the Money Around Price (IOMAP) chart shared by Martinez, Ethereum shows a potential price support between $2,846 and $2,905, with over 1.64 million ETH bought by 1.99 million addresses at this level.

Nonetheless, the chart also displays that an ETH rally could face resistance at $3,457 and $3,557.

ETH’s Follows Bitcoin’s Correction

Ethereum behaved no differently than the rest of the crypto market. Bitcoin’s correction saw its price drop from the $70,000 mark to hover between the $65,000-$64,000 price range.

The flagship cryptocurrency shredded 7.1% of its price in the last 24 hours. Similarly, Ethereum’s red numbers show a 7.4% drop from yesterday and a 7.5% decrease on Monday.

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