Amid the ongoing crypto market crash, will Ethereum (ETH) maintain dominance at the $3,000 psychological support level?
With Bitcoin retreating to the $95,000 range, Ethereum has fallen by nearly 10% over the past 24 hours. It is currently trading below the $3,400 mark, maintaining a market capitalization of around $401 billion.
With massive liquidations and an outflow in the Ethereum spot ETF market, bears are gaining control of the trend.
Ethereum Price Analysis
On the 4-hour chart, the bullish breakout above the $3,500 zone failed to sustain momentum, reversing at the $3,700 level. This reversal coincided with the drop in Bitcoin prices, triggering a sharp decline.
Following a series of bearish candles, the Ethereum price has dropped to $3,333, falling below its 200 EMA line on the 4-hour chart. Ethereum is now back within its previous range, which spans from $3,400 to $3,150, with support at $3,244.
With frequent price rejections and a continuing streak of bearish candles, it is likely that bears will challenge the critical support level. Additionally, the increase in selling pressure has pushed the 4-hour RSI into the oversold region.
Moreover, the 50 and 200 EMA lines suggest a higher likelihood of a death cross, signaling further downside. As a result, the technical indicators are flashing a sell signal.
Ethereum ETFs Bleed Amid High Liquidations
In the wake of crypto market liquidations, Ethereum derivatives have experienced a 5.51% drop in open interest. Currently, it stands at $30.42 billion, with the long-to-short ratio turning notably bearish at 0.8968.
With $146 million in liquidations, bulls have lost $131.54 million. Additionally, funding rates have declined to 0.052% compared to 0.093% in the past 24 hours.
Furthermore, the daily net outflow from U.S. Ethereum Spot ETFs reached $86.79 million, contributing to a bearish trend. Notably, Fidelity saw $67 million in liquidations, while the Grayscale Ethereum Trust lost $11.19 million.
ETH Price Targets
Based on the current price action, the breakdown of the $3,244 support level will determine Ethereum’s next price movement. As the RSI enters the oversold region, there is a chance of a reversal due to bearish exhaustion.
This could drive a potential bounce back toward the $3,415 resistance level with a V-shaped reversal. However, with the broader market still under pressure, Ethereum’s next immediate bearish target is the $3,095 support level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
