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Ethereum has suffered a 15% decline since hitting a recent high of $2,729 last Friday, leaving analysts and investors feeling frustrated with the price action. Many expected the bullish trend to continue, but Ethereum is struggling to maintain its upward momentum.
Concerns are growing as some market watchers predict a deeper decline that could drop to one-year lows around $2,150 if current levels of support are not maintained. This has reignited fear and uncertainty in the market as Ethereum’s price sends mixed signals.
The recent decline has shaken confidence, and market participants are eagerly awaiting clear direction. Analysts are closely watching Ethereum’s next move and whether it can regain support levels to get back on an upward trajectory.
The coming days are expected to be crucial for Ethereum price action, with investors preparing for increased volatility in response to changing market conditions.
Ethereum Testing Key support line
Ethereum is currently at a critical juncture that may determine its direction in the coming week. The price action over the next few days is expected to be crucial for Ethereum and the overall altcoin market. Analysts are closely monitoring whether ETH can maintain its strength as the second-largest cryptocurrency by market capitalization. Failure to stay above key support levels could signal a broader market decline.
Analysts and investors are eagerly awaiting Ethereum’s recovery as it hovers above a key support line that could be the starting point for a rally towards novel highs. Recently, one of the leading analysts, Carl Runefelt shared his observations about Xhighlighting the current trend line supporting the ETH price.
In his technical analysis, Runefelt warns that the price could drop significantly if Ethereum fails to maintain this trendline. If the price breaks this support, it will set $2,150 as its next potential target.
A drop to these levels would likely shock many investors expecting a continuation of growth in the coming weeks. If ETH loses this key support, it could lead to uncertainty and increased volatility. This decline will keep market participants on the edge of their seats waiting for the next move.
ETH price action details
Ethereum (ETH) is trading at $2,350 after failing to make a higher high above $2,820. This latest price action disappointed bulls as ETH lost key support levels, including the 4-hour 200 exponential moving average (EMA) at $2,542 and the basic moving average (MA) at $2,466.
These indicators are crucial in identifying short-term trends, and their loss through support has raised concerns about further loss risks.
For the bulls to gain momentum, ETH needs to break above the 4-hour EMA 200 and the 4-hour MA and successfully hold these levels as support. Recovering these indicators would mean renewed strength and would pave the way for another attempt at price increases.
However, a deeper correction is likely if Ethereum fails to regain these levels. The next target becomes key support around $2,100, with the potential for even lower prices. Investors are closely monitoring these levels as the coming days will be crucial in determining whether ETH can recover or continue its downtrend.
Featured image from Dall-E, chart from TradingView