The Price of Ethereum Will Not Stay at $3,000
Journalist
- Ethereum’s market structure could tip in a bearish direction if it breaks below $3050.
- Selling pressure and momentum were steadily increasing, and this could lead to more losses.
There was a wave of strong selling pressure over the past 24 hours. Bitcoin [BTC] Ethereum [ETH] In each case, losses of 7-8% were recorded, and an even larger drop seemed likely. The $3.5k was a critical short-term support level for ETH.
Ali Martinez, a crypto analyst, noticed the formation of a bear flag. If this prediction came true, it could lead to a drop to $2.8k. Will the bears fulfill this prediction?
Who will win the round: The demand zone or the bear pennants?
Source: TradingView ETH/USDT
AskFX has highlighted AskFX’s pennant formation in white. Due to its length, it is possible that a decline to $2,600 may begin. In February, ETH consolidated between $2,800 and $2,900 before rising above $3,000.
It could therefore act as support for the downward move and fend off the bears. This $3,100 area was also a bullish order block on a lower time frame that caused a major price reaction this month.
Over the past two weeks, trading volumes decreased as Ethereum developed a bearish pattern. The pattern appeared when the trend line fell below the break. If the price falls below $3056, the market structure turns bearish in the 12-hour chart.
Ethereum is undervalued, but should you buy it?
AskFX analyzed some of Ethereum’s on-chain metrics and found positive results for investors. Since March 18, the 30-day MVRV has been below zero, indicating an undervalued asset.
The Mean Coinage, which had been trending downward since February 9, started trending upward.
All in all, they were a strong buy signal. This signal is not short-term. Technical analysis is also important for risk management. At press time, the bears are ahead.
Is your portfolio in the green? Check out the Ethereum Profit Calculator
When comparing the network’s growth in March and January, it was clear that a larger number of new addresses had been created.
The total open interest fell along with the price, indicating a short-term bearish sentiment. The evidence showed that even a drop to $3,100 or $2,600 would still be a good opportunity for long-term investors.
