ETH is at risk of falling to $2.5K if this support is broken

Ethereum has shown bearish signals after falling below its 100-day moving average, underscoring increased selling activity.

However, the 200-day MA, which acts as the last line of defense for buyers, still holds, offering hope for a potential bounce.

Technical Analysis

By Shayan

The daily chart

ETH recently broke below the important 100-day MA at $3.1K, indicating the increasing dominance of sellers. This breakdown points to a potential test of the $3,000 support region, a critical juncture aligned with the 200-day MA.

Ethereum is currently finding temporary support at this level, with a modest bullish reversal hinting at buyer demand. The 200-day MA serves as the main line of defense for the bulls, and its ability to hold will determine the short-term trajectory. A break below this level could trigger a medium-term bearish trend, targeting the $2.5K support zone.

The 4 hour chart

In the 4-hour period, ETH saw consolidation near the 0.5 Fibonacci retracement level ($3.2k) before sellers overwhelmed the market, breaking below this critical support. This led to a wave of long sell-offs, which pushed the price towards the $0.618 Fibonacci retracement level at $3,000.

This region is critical as it represents the last major area of ​​support for buyers. A sustained breach below this level could lead to a cascade of liquidations, driving the price towards the $2.5K target. However, Ethereum appears to be consolidating around this juncture, with a potential battle between buyers and sellers.

Onchain analysis

By Shayan

Ethereum is testing the critical $3,000 support region, with sellers pushing to regain control. Taker Buy Sell Ratio statistics provide insight into market sentiment and potential direction.

Upon reaching the $3,000 support region, Taker’s buy-sell ratio initially increased, reflecting increased buying power and a defensive stance by buyers. However, this trend was short-lived as a subsequent sell-off coincided with a bearish reversal in the metric. Since then, the ratio has steadily declined, indicating an increasing dominance of sellers in the market.

If this trend persists, the probability of a break below the $3,000 threshold increases. This scenario would likely lead to more selling activity, pushing ETH towards the $2.5k support level. Conversely, a reversal of the ratio could indicate renewed interest from buyers, stabilizing the price at this critical time.

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