Is ETH in danger of falling to $3,000 or will the bulls wake up? (Ethereum Price Analysis)

ethereum price has landed in a substantial and decisive support region following a brief consolidation correction stage, with potential for a bullish reversal.

However, if ethereum sellers violate this pivot, a market cascade is likely.

By shayan

The daily chart

A closer look at the daily chart shows that ethereum has reached a fundamental support region after a brief consolidation correction stage. This region spans the price range between the 0.5 ($3,421) and 0.618 ($3,289) Fibonacci levels, lining up with substantial support at the 100-day moving average ($3,412). t

The alignment of these support indicators highlights the strength of this critical level and the prevailing demand at this juncture, which could stop further downward pressure.

A battle between buyers and sellers is expected in this critical price range, leading to increased market volatility and possible sell-offs. The outcome will likely determine ethereum's next trend. If sellers outweigh buyers and break through this crucial support region, a waterfall towards the 200-day moving average at $2,996 will be imminent.

The 4 hour chart

On the 4-hour chart, ethereum formed a head and shoulders pattern, resulting in increased selling activity and a break below the neckline of the pattern.

This development and a bearish divergence between the price and the RSI indicator have intensified the bearish momentum, leading to a significant bearish move. Following this, ethereum has formed a descending flag pattern, a well-known bullish continuation pattern if broken from the upper boundary.

Currently, the price hovers around a critical and decisive support region marked by the 0.5 ($3,420) to 0.618 ($3,289) Fibonacci retracement levels and the lower boundary of the flag. This area is experiencing intense volatility and fluctuations.

If the sellers break this crucial support, an impulsive downtrend is expected targeting the $2,900 support. On the contrary, if sufficient demand returns and the existing supply is reduced, a reversal towards the upper limit of the flag at $3.6 thousand is likely.

By shayan

ethereum price has seen increased selling pressure near the $4,000 mark, leading to a significant drop. This is likely due to participants' aggressive interest in opening short positions near this fundamental level. Analyzing potential liquidation levels is crucial to determining medium-term price objectives.

As the chart demonstrates, a significant amount of liquidity resides above the crucial $3.9K mark, potentially representing notable short positions buying orders around this critical juncture. This region of liquidity is likely to be the primary target of buyers if demand returns to the market and the price experiences a bullish reversal near the $3,000 threshold.

Reaching this crucial liquidity range would likely lead to increased market volatility and potentially trigger a short squeeze event, where short positions would be forced to cover, driving the price higher. However, if the selling pressure continues and ethereum fails to regain higher levels, the price may continue to consolidate or decline.

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