The price of Ethereum (ETH) has been declining steadily over the last week, but it is currently trading below two key support levels. It is anticipated that the pessimism will worsen over the next few days, though, as ETH is now experiencing a market top.
Ethereum Is Expected to Drop by $3,000 Because of This:
Ethereum's price failed to reach $3,500, a floor of support, despite the recent decline. As a result, bitcoin investors have made money. Currently, earnings make up more than 96% of the total supply.
A market peak is validated in such a case. The price peak that an asset reaches just before a decline in value starts is referred to as the "market top." It denotes a peak in investor confidence and frequently comes before a correction or decline in the market. When over 95% of the supply is profitable, this is verified.
Additionally, over the past few months, the supply of ETH on exchanges has been steadily increasing, resulting in a steady sell-off. More than 2.31 million ETH worth over $7.6 billion have entered the exchanges as a result of investor sales.
Therefore, Ethereum price would find it tough to engage in a rebound if selling keeps up in negative conditions, which would drive ETH further lower.
ETH Price Forecast: Is $3,000 Still Ahead?
With the price of Ethereum currently trading at $3,308, it has already broken below the $3,336 support line as well as the 50- and 100-day Exponential Moving Averages (EMAs). Since ETH is now very vulnerable, it may test $3,031, the next critical price mark, as support.
This is a likely amount of decline, and if the previously described circumstances hold, ETH may drop below $3,000.
It may, however, begin to rebound or slow down the drop if it can move beyond $3,031. In doing so, the price of Ethereum would have a chance to recover $3,336 and refute the bearish theory.
April 2024, Cryptoniteuae