Ethereum (ETH) Price Faces Crucial Test as Bulls Attempt to Defend

Ethereum is struggling below the $3,000 level, placing the market at a critical point where bulls must step in to prevent a deeper correction.

Ethereum, second largest cryptocurrency with the biggest market cap, is the platform for different kinds of applications. Ethereum blockchain is the base platform for Smart Contracts, NFTs (Non-Fungible Tokens), and DeFi (Decentralized Finance).

With such a large presence in the market, it’s easy to see how fluctuations in price can cause a ripple effect through the entire industry. At press time, the coin is trading at $2,944.14 with a decline of 1.2 % over the past 24 hours.

Ethereum Slides Under $3K

According to the data from TradingView, Ethereum is under $3000, with the momentum of dropping, and the RSI (Relative Strength Index) at 40.26 indicates a declining strength. The MACD (Moving Average Convergence Divergence) has crossed bearish, suggesting an increase in selling pressure.

The price is also below the 53.91 moving average, meaning bulls must get above the $3050 price point if they want to regain control.

Source: TradingView

Also Read: Ethereum (ETH) Drops 6% as Renewed Selling Pressure Hits Crypto Markets

The Price Action of ETH Leads to Panic Selling

Ted on his recent update on X, also lists a couple of different scenarios of how ETH could react to reclaiming the range of 3000 – 3050, and then make a run toward 3200 – 3250 dollars, or if the price doesn’t reclaim that range.

Then a possible drop to between $2915 to $2940, which would lead to even more of a decline and possible new lows for the year. The chart provided shows both bullish continuation patterns and bearish rejection patterns.

https://twitter.com/TedPillows/status/2014255715180044304?s=20

Conversely, a failure to break over the $3050 level would likely expose ETH to additional downside risk. During the next few days, we will see how the momentum of the overall market will shift from bearish trending to bullish trending. If we have bullish movement, we should expect to see bursts of volume for ETH in the upcoming days.

ETH is at a pivotal point, with buyers trying to establish a strong buying point in the price action at or around $2970. The ability for price to break back over $3050 should provide for bullish activity to possibly break through toward the 3200 dollar target level.

Also Read: Ethereum Whale Activity Spikes, Raising Short-Term Market Questions