Ethereum (ETH) is experiencing a significant decline, and its price is fast approaching the important support level of $3,051. This sharp decline highlights increased selling pressure and growing bearish sentiment in the market.
As Ethereum approaches this important threshold, traders carefully monitor its behavior for signs of stability or continued decline. The $3,051 support level is now a focal point, determining the short-term direction of Ethereum’s price action and potentially setting the stage for future moves in the cryptocurrency market.
This article aims to analyze the sharp decline affecting the digital asset and its impact on the price of the cryptocurrency as it approaches the $3,051 support level. It also seeks to provide traders and investors with a comprehensive understanding of the current situation, possible scenarios if a support level holds or breaks, and strategies for managing risk in this volatile environment.
The price of ETH is currently trading around $3,181 and is down 5.05% with a market capitalization of over $382 billion and a trading volume of over $18 billion as of the time of writing. In the last 24 hours, there has been a 5.25% decrease in ETH market capitalization and a 74.43% increase in trading volume.
Technical Indicators Pointing To A Decline For Ethereum
Technical analysis of ETH price action on the 4-hour chart reveals that the crypto asset is active and trading below the 100-day Simple Moving Average (SMA). Ethereum has been bearish since breaking the $3,360 mark and is currently looking towards the $3,051 support level.
Also, the analytical view of the 4-hour Composite Trend Oscillator shows that the price of ETH may continue its bearishness as both the signal line and the SMA of the indicator have fallen below 50% and are trying to move to the oversold area.
On the 1-day chart, the crypto asset has fallen sharply below the 100-day SMA and is attempting a break below the bullish trend line while falling to the $3,051 support level.
Finally, on the 1-day chart, the composite trend oscillator shows some movement of ETH as a signal and the SMA indicator is both trending in an oversold area.
What If The $3,051 Support Fails?
Analyzing the possible consequences if Ethereum breaks the support level of $3,051 reveals that if the digital asset breaks below this level, it may go down to test the support level of $2,865 and possibly go on to test the support level of $2,160 and other levels below if price violation. this level.
However, if the price of Ethereum faces rejection at the $3,051 support level, it will start to rise to the $3,360 resistance level. If the stock breaks this level, it may continue to rise to test the $3,659 resistance level and possibly move forward to test other higher levels if it breaks the $3,659 level.
Featured image from iStock, chart from Tradingview.com
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