Will ETH hit $3.5k or will there be another crash?

Ethereum has recently faced a notable pullback, experiencing a 13.3% drop after breaking above its 100-day moving average.

Currently, the price is struggling to break below the 200-day MA, indicating a notable bearish sign if the breakout occurs.

By Shayan

The daily chart

A close examination of Ethereum’s daily chart reveals that after breaking through the critical 100-day moving average at $3,354 and a brief period of consolidation, it experienced a significant rejection, resulting in a 13.3% drop.

This decline has led to a break below the crucial 100-day MA support region, suggesting a bullish trap.

Despite this, Ethereum has reached a major support region centered around the 200-day moving average at $3.2k.

This dynamic support zone is a crucial defense for buyers, which may have substantial demand.

If the price breaks below this critical threshold, it would indicate a notable bearish sign for the market, paving the way for a bearish pullback to the lower bound of the multi-month wedge at $2.8K. Therefore, Ethereum’s next trajectory is highly dependent on its price action near the important 200-day MA.

Source: TradingView The 4-hour chart

The 4-hour chart shows that Ethereum has faced increased selling pressure near its previous major pivot of $3.5K, leading to a break below the lower boundary of the short-term ascending wedge.

This break catalyzed the downtrend and momentum, leading to a sharp decline towards the previously broken downtrend line. This movement can be interpreted as a pullback to the trendline, validating the breakout.

However, the overall price action indicates the presence of sellers in the market, with the price swinging between the dynamic support of the downtrend line and the critical resistance region at $3.3k.

Optimism will return to the market if the price breaks through the $3.3 thousand region and an uptrend will be more likely. On the contrary, if the price does not recover the region of $3.3 thousand, a continuation of the bearish pullback towards the $2.8 thousand mark becomes the most likely scenario.

Source: TradingView

By Shayan

Ethereum has recently experienced a bearish reversal, declining significantly towards the critical $3,000 support zone. Understanding potential targets for an uptrend is essential to predicting future price movements.

The attached chart identifies possible liquidation zones within Ethereum’s price action, providing insight into mid-term strategies by informed traders.

A notable amount of liquidity is above the previous swing high of $3.5K and near the $4K mark, indicating that short positions in the perpetual markets have primarily driven the recent bearish developments. Therefore, these price regions can serve as prime targets for the smart money in the medium term, aiming to strategically exploit these liquidity zones, supporting further upward momentum in the price of Ethereum.

Source: CoinGlass SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. We recommend that you do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.