ethereum found a significant rejection at the $2.8K threshold, followed by a pullback to the broken lower boundary of the wedge.
This price movement reflects bearish sentiment and suggests a possible continuation of the downtrend with the next target being the $2.1K support region.
Technical analysis
By shayan
The daily chart
ethereum had been struggling near the lower boundary of a multi-month wedge at $2.8K for several weeks before encountering significant selling pressure, leading to a notable rejection.
As anticipated in our previous analysis, eth completed a successful pullback to this broken level, followed by a steep decline. The significant supply pressure around the $2.8K mark suggests that this rejection could push the price towards the critical support region of $2.1K.
Moreover, the 100-day moving average recently crossed below the 200-day moving average at $3,200, forming a “death cross.” This bearish signal reinforces the expectation of a continued downward move towards the crucial support zone of $2,100 in the near term.![]()
eth-D-6-scaled.jpg” alt=”” srcset=”https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-scaled.jpg 2560w, https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-300×153.jpg 300w, https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-1024×523.jpg 1024w, https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-768×392.jpg 768w, https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-1536×784.jpg 1536w, https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-2048×1046.jpg 2048w, https://technicalterrence.com/wp-content/uploads/2024/08/Ethereum-Price-Analysis-Is-ETH-Doomed-to-Drop-to-2100″https://technicalterrence.com/crypto/ethereum/”>eth-D-6-50×26.jpg 50w” />
The 4-hour chart
On the 4-hour chart, ethereum failed to break through the key resistance region defined by the 0.5 ($2.6K) and 0.618 ($2.8K) Fibonacci levels, leading to increased selling pressure.
This resulted in a significant rejection at the $2.8K level, initiating a pronounced downtrend. Moreover, eth broke below the lower boundary of the ascending wedge on the 4-hour timeframe, a pattern that usually signals trend continuation. Consequently, the asset is expected to continue its decline in the near term, with sellers likely to target the crucial support level of $2.1K.![]()
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On-chain analysis
By shayan
The futures market has played a significant role in ethereum’s recent price movements, and the past few weeks have highlighted this influence. Analyzing futures market sentiment offers valuable insights into potential price trends.
This chart shows ethereum’s funding rate metric, which measures whether buyers or sellers are more aggressive in placing orders. Positive values reflect bullish sentiment, while negative values indicate a bearish outlook.
As observed, funding rates have been trending downwards over the past few months, reaching their lowest levels ever. This consistent decline suggests a prevailing bearish sentiment in the market, with a notable lack of buying interest. Demand in perpetual markets needs to increase for ethereum to recover and approach its all-time highs. If the current trend continues, further price declines are likely in the medium term.![]()
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ethereum Price Analysis: Is eth Doomed to Crash to $2.1K Soon? The post appeared first on CryptoPotato.
ethereum (eth) Price
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