Price Analysis

Ethereum (ETH) Price Back to Pre-ETF Levels: Will It Break Down Below $3000?

The crypto markets are plunging hard! Bitcoin price is falling! The Ethereum price is also following suit and heading close toward crucial support. The popular tokens face massive selling pressure while the global market cap plunges below $2.18 trillion. Meanwhile, the ETH price, held strongly above $3300, was slashed hard by more than 5%, raising speculation of plunging below $3000 in the coming days. 

The ETH price is officially back at the origin of the ‘ETF-Pump’, which suggests that traders have begun to’sell the news’. The historical chart pattern suggests the second-largest token to be under the bullish influence and may trigger a strong rebound. However, the seller has capitulated to the markets and hence, the buyers are not expected to enter and revive a fresh upswing until the price hits the bottom. 

Will the ETH price plunge below $3000?

After holding for over 45 days, the ETH price has dropped below the crucial support zone between $3328 and $3289. These levels had earlier offered a strong base and a breakdown caused the price to slump close to $2900. Therefore, a similar trade set-up appears to have been formed, which may drag the levels below $3000 if the bulls fail to defend the local support at $3166. However, the bearish trade set-up is expected to play out as the Ichimoku cloud suggests the trend of the rally displays an end to the bullish trend and is about to go bearish. 

On the other hand, the +Di & -Di of the DMI just diverged before a bullish crossover, circulating beamish waves across the platform. Therefore, the ETH price is expected to drop below the major support and reach the previous lows close to $2900. However, the ADX remains neutral after dropping from the highs, which suggests a decrease in the strength of the rally, compelling the price to maintain a descending consolidation without any major moves. 

Besides, the ETH/BTC is also holding pretty strong, so it may be a good spot to get in before the launch of the ETF. This move may even bolster the bullish momentum, which may pave the way for a new ATH before the end of 2024. 


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