Ethereum is hovering around $3,000 after selling off $300 million! Will the Bulls lose their defense?
Ethereum post is hovering around $3,000 after selling $300 million! Will the Bulls lose their defense? First appeared on Coinpedia Fintech News
The next Bitcoin Halving event is just three days away, marking the fourth occurrence of this important event for BTC. Cryptocurrency markets are currently facing the sharp decline typically observed before halvings. Despite the price of Ethereum stabilizing around $3,000, analysts view the current decline as temporary and expect it to recover shortly after the halving.
Cryptocurrency triggers discount trading
Over the past 24 hours, the cryptocurrency market has fallen significantly, resulting in liquidations of over $300 million. Cryptocurrency markets are currently facing significant volatility, particularly affecting Ethereum (ETH), which is seeing significant price declines.
As the prices of Bitcoin and Ethereum fall due to increased liquidations, QCP advises cautious investment and recommends purchasing at prices well below the current market price. As a result, investors are expected to strongly defend the support line for Ethereum as it could face a cumulative increase due to rising “buy” sentiment.
According to IntoTheBlock data, ETH price has fallen with the MVRV ratio (Market to Realized Value) currently at 1.69. This means that the market value of Ethereum is getting closer to its realized value, i.e. the value of the last transaction. This was triggered after traders sold their holdings at the highest prices and recorded profits. As a result, this reduces current purchasing confidence.
Additionally, the Ethereum/Bitcoin ratio recently hit a three-year low of 0.046, last seen in May 2021. The recent violation of a critical support level in the ETH/BTC pair could indicate a potential decline in the price of Ethereum in the near term.
Each time the ETH/BTC pair breaks the support line, the ETH/USD pair falls 20% from its recent highs over a period of 3-6 months. The ETH/BTC pair has experienced a loss of support, but the full impact of this change is unclear at this time. Accordingly, it rebounded above the support line and maintained buying momentum.
What’s next for ETH price?
Ethereum price is facing severe bearish pressure near $3,300. As a result, the price fell again and fell below the EMA20 trend line. However, the bulls aim to protect against further declines by keeping the price above the psychological level of $3,000. At the time of writing, ETH price is trading at $3,057, down more than 4.9% in the last 24 hours.
If the price stays above $3,000, it could trigger recovery momentum and extend to the 20-day EMA of $3,142, which is an important level to monitor. If the price pulls back from this level, it could fall back to $2,870 and possibly further to $2,721.
Conversely, if the price remains above $3,100, it means the market may continue to trade sideways. A move above the 20-day EMA could strengthen the strength and potentially lead to a surge to $3,300. To continue the upward trajectory, buyers will need to send the price above $3,600 and then major resistance at $4K.