Ethereum Analysis: Risk of Dropping Below $3,000

Ethereum (ETH) is currently facing significant downward pressure, with the price dropping 3% in the past 24 hours. This downward trend could push the price of ETH below the critical $3,000 level.

This analysis examines the factors contributing to this possibility.

Sellers are back

An assessment of the ETH/USD chart over a day has revealed that the coin's MACD indicator is forming a potential "Death cross". At the time of writing, the coin's MACD line (green) is attempting to fall below the signal line (orange).

This indicator measures the asset's price trend and momentum and identifies potential buy or sell signals. A MACD "Death cross" occurs when the MACD line (short-term medium) crosses below the signal line (long-term medium), indicating a downward trend or a reversal in momentum. This signal suggests that selling pressure is increasing, and the asset's price may decline further.

The rising Aroon Down line of ETH confirms that this downward price pressure is gaining momentum. Currently, it is at 78.57%, confirming that the decline in ETH's price is gaining momentum.

The Aroon indicator assesses the strength of an asset's price trend through two components: the Aroon Up line, which reflects the strength of the uptrend, and the Aroon Down line, which reflects the strength of the downtrend. The rising Aroon Down line indicates that recent lows are occurring more frequently, signaling an increase in downward momentum or the start of a downtrend.

ETH Price Prediction: Critical support level to watch

Currently, ETH is trading at $3,333, above the support level formed at $3,203. This level is crucial because if it drops below, ETH will trade below $3,000. According to the Fibonacci Retracement tool's indicators, the price of Ethereum will drop to $2,970 if this occurs.

However, if demand for this top Altcoin increases again, this bearish thesis will no longer hold true. If this happens, Ethereum will rise to $3,500.

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