Analyst warns of a bearish future if Ethereum falls below this level

ethereum (eth) showed notable performance throughout March. The second-largest cryptocurrency hit $4,000 twice and looked ready to take off to a new all-time high (ATH) as the entire cryptocurrency market soared.

The first quarter (Q1) of 2024 closed with important x.com/MacroCRG/status/1774574969545957797?s=20″ target=”_blank” rel=”nofollow”>achievements for the crypto community. However, at the start of the second quarter, bitcoin began a correction that dragged down ethereum and the rest of the crypto market.

Are ethereum bulls in trouble?

The king of altcoins has been in the red for the past two days. eth's momentum recovery after the market slowdown stalled after the token followed btc and the rest of the market.

On Monday, cryptanalyst Ali Martinez x.com/ali_charts/status/1774793622229025079?s=20″ target=”_blank” rel=”nofollow”>voiced

Martínez considered that “exceeding the $3,400 support level” was the most brutal scenario for the second largest cryptocurrency. This move would confirm a bearish pennant pattern that formed on the daily chart.

If confirmed, the bearish formation could cause eth price to face a “major correction,” according to the analyst. The correction could cause the price of Ether to fall to $2,800.

Martínez reaffirmed his analysis after ethereum continued to fall in the early hours of Tuesday. After the token fell below the aforementioned support level, the analyst stated that falling below $3,460 was a problem for the bulls.

<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>

twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereum Falling below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances of further twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth correction towards $2,850 or less. pic.twitter.com/dFpnpZtBVM

—Ali (@ali_charts) twitter.com/ali_charts/status/1775034515221602730?ref_src=twsrc%5Etfw” rel=”nofollow”>April 2, 2024

“Given the lack of support,” failure to reclaim this support zone could trigger further corrections for eth that could fall even below the previously forecasted $2,800.

According to the In/Out of the Money Around Price (IOMAP) chart shared by Martinez, ethereum shows potential price support between $2,846 and $2,905, with over 1.64 million eth purchased by 1.99 million addresses at this level .

However, the chart also shows that an eth rally could face resistance at $3,457 and $3,557.

eth follows bitcoin correction

ethereum did not behave any differently than the rest of the crypto market. bitcoin's correction caused its price to fall from the $70,000 mark to hovering between the $65,000-$64,000 price range.

The flagship cryptocurrency destroyed 7.1% of its price in the last 24 hours. Similarly, ethereum's red numbers show a 7.4% drop from yesterday and a 7.5% decline on Monday.

<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>

Reorganization of the Innocents to start the quarter.

It's time to get to work. Let's get this bread guys pic.twitter.com/0458Qvrr4F

– Jelle (@CryptoJelleNL) twitter.com/CryptoJelleNL/status/1774878275522687301?ref_src=twsrc%5Etfw” rel=”nofollow”>April 1, 2024

In the weekly and monthly periods, the king of altcoins has decreased by 9.2% and 3.4%. However, its 3-month chart shows green numbers, with a positive increase of 39.74% since 2024 began.

Despite the negative performance, ethereum's daily trading volume increased by a remarkable 80.80%, with over $22.5 billion traded in the last 24 hours, suggesting an increase in market activity. At the time of writing, eth was trading at $3,283.

<img decoding="async" class="size-large wp-image-601046 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/Analyst-warns-of-a-bearish-future-if-Ethereum-falls-below.png" alt="eth, ETHUSDT, ethereum, crypto, crypto analyst” width=”860″ height=”433″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/04/ETHUSDT_2024-04-02_07-30-03.png?w=1022 1022w, https://www.newsbtc.com/wp-content/uploads/2024/04/ETHUSDT_2024-04-02_07-30-03.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/04/ETHUSDT_2024-04-02_07-30-03.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/04/Analyst-warns-of-a-bearish-future-if-Ethereum-falls-below.png 860w, https://www.newsbtc.com/wp-content/uploads/2024/04/ETHUSDT_2024-04-02_07-30-03.png?w=360 360w, https://www.newsbtc.com/wp-content/uploads/2024/04/ETHUSDT_2024-04-02_07-30-03.png?w=750 750w” sizes=”(max-width: 860px) 100vw, 860px” loading=”lazy” data-recalc-dims=”1″/>

ethereum is trading at $3,238 in the one-day chart. Source: ETHUSDT on x/5y56mdjH/" target="_blank">Tradingview.com

Featured image from Unsplash.com, chart from TradingView.com

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