Is Ethereum (ETH) in danger of a price drop?

Arman Shirinian

Ethereum could lose a substantial portion of its value if this price level does not hold

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Ethereum could fall below a crucial price level, especially if the historical support level does not hold. For now, Ethereum is trading at the $3,760 price level, with support at $3,720. In case of a fall below the aforementioned support, the 26 EMA is the next level for a rebound.

Potential volatility is indicated by Ethereumcurrent price action. Since the $3,720 support level has already been tested several times, bulls need to protect it. The 26 EMA, which currently sits at $3,568, is the next major support if this level is breached.

ETH/USD chart by TradingView

It will be carefully observed whether this moving average can offer support, as it has in the past during corrections. The signals from technical indicators are contradictory. The fact that the RSI is hovering around 62 indicates that ETH is not yet in overbought territory, but further declines are possible before oversold levels are reached.

The low volume, on the other hand, suggests that there is not much buying interest to drive prices higher. Additionally, it is generally considered a bearish signal indicating that Ethereum has been consolidating for more than a week. This implies that there could be a slowdown in the recent bullish momentum.

Compared to other cryptocurrencies, Ethereum has performed quite well, considering the broader market environment. However, external variables, such as ETF news or notable changes in the price of Bitcoin, could have an effect. However, the market is relatively bullish, which could be beneficial for ETH.

About the Author

Arman Shirinian

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.

Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.

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