ETH risks falling to $2,500 if this support breaks

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

However, the 200-day MA, which acts as the last defense for buyers, still holds, offering hopes of a possible rebound.

Technical analysis

By shayan

The daily chart

eth recently broke below the significant 100-day MA at $3.1K, indicating the growing dominance of sellers. This breakdown points to a possible 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 defensive line for the bulls, and its ability to hold will determine the near-term trajectory. A fall below this level could trigger a medium-term downtrend, targeting the $2,500 support zone.

The 4 hour chart

On the 4-hour time frame, eth saw consolidation near the 0.5 Fibonacci retracement level ($3,200) before sellers overwhelmed the market, breaking below this critical support. This triggered a wave of long liquidations, driving the price towards the 0.618 Fibonacci retracement level at $3,000.

This region is critical as it represents the last major support zone for buyers. A sustained break below this level could trigger a cascade of sell-offs, pushing the price towards the $2,500 target. However, ethereum appears to be consolidating at this juncture, with a possible battle between buyers and sellers.

Chain analysis

By shayan

ethereum is testing the critical $3K support region, and sellers are putting pressure on to regain control. Taker Buy Sell Ratio insights provide insight into market sentiment and potential direction.

Upon reaching the $3K support region, the buyer's bid-sell ratio initially increased, reflecting higher purchasing power and defensive stance of the 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 decreased, indicating a growing dominance of sellers in the market.

If this trend persists, the probability of a breakout below the $3,000 threshold increases. Such a scenario would likely lead to further selling activity, pushing eth towards the $2.5K support level. Conversely, a reversal in the ratio could indicate renewed buyer interest, stabilizing the price at this critical time.

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