Over the last 24 hours, Ethereum [ETH] has witnessed a significant drop in price, decreasing by approximately 20% and slipping below the critical $3,000 mark.
The downward trend accelerated once it fell under important support levels at $2,800 and $2,650, pushing it into a negative territory and causing concern among stakeholders.
With the shift in momentum towards the downside, there is a question looming about whether Ethereum can initiate a recovery or if there are more challenges ahead.
As the market grapples to establish a direction, there is a keen focus on these pivotal levels, which could pave the way for a potential reversal or indicate further declines.
ETH’s Bearish Trend Strengthens
Within the recent 24-hour period, approximately $2.04 billion has been liquidated from the cryptocurrency market, with a substantial portion of $531 million belonging to ETH.
Ethereum has faced a sharp decline, dropping below the crucial $3,000 threshold and showing weaker performance compared to Bitcoin.
The price swiftly moved under the significant support ranges at $2,800 and $2,650, marking the beginning of a bearish phase.
This downward pressure intensified as ETH crossed the $2,500 threshold, experiencing a drop of over 25% and hitting a low of $2,127, testing the $2,120 area.
While temporary support has emerged, with ETH consolidating its losses above $2,300, the overall trend remains notably bearish.
The technical analysis offers a bleak outlook. Ethereum has breached both the 50-day and 200-day SMAs, affirming a considerable shift in trend.
The RSI plummeted to 28, indicating oversold circumstances that might suggest a potential relief rally.
Simultaneously, the MACD demonstrates a deepening bearish momentum, with the MACD line moving further below the signal line.
Potential Scenarios for Ethereum: Bullish vs. Bearish
Ethereum currently finds itself at a crucial point where both bullish and bearish scenarios are unfolding.
On the optimistic side, reclaiming support at $2,800 could signify a reversal, especially if accompanied by a bullish MACD crossover. Furthermore, a broader market rally, particularly in Bitcoin, could offer additional momentum.
In contrast, a slip below $2,400 for Ethereum may trigger stop-loss orders, propelling prices toward $2,200 or below. Failing to regain control over the 50-day and 200-day SMAs would solidify bearish influence.
External market influences could potentially exacerbate the downturn.
An Insight into Ethereum’s Future Development
Looking ahead, Vitalik Buterin’s vision for Ethereum in 2030 presents an ambitious roadmap for the blockchain’s evolution.