It’s Time to Analyze Ethereum’s Price Movement: What’s Next for ETH Investors?
Recent data suggests that Ethereum (ETH) experienced a slight drop below the $3000 mark on the 30th of April, causing a surge in social interactions related to the digital asset. According to Santiment, Ethereum briefly became the topic of discussion on social media platforms like Telegram, Reddit, and others following this price dip.
As of the latest information available, Ethereum holds the second position in terms of social engagement, just behind Bitcoin (BTC). The surge in social activity surrounding ETH, peaking by 150% between the 29th and 30th of April, often indicates a potential price correction in the near future.
Is Ethereum Headed for a Correction or Continuation?
While the increase in social activity could suggest an imminent price adjustment, a closer look at Ethereum’s daily price movements hints at a different narrative. The digital asset’s decline below $3000 failed to hold an essential support level at $3145, signaling a potential further downside.
Currently trading at $2,899, Ethereum faces a significant likelihood of a continued decline as market demand for the altcoin decreases. Key technical indicators, including the Relative Strength Index (RSI) and Money Flow Index (MFI), point towards a preference for coin distribution rather than accumulation.
Moreover, Ethereum’s Moving Average Convergence Divergence (MACD) reflects a bearish momentum as the blue line remains below the orange signal line, nearing the zero mark. This situation typically indicates a downward pressure on the asset’s price, often interpreted as a potential signal to sell by traders.
If the bearish trend persists, Ethereum could see a further drop to $2867. However, a renewed demand from bulls leading to a price rally might help Ethereum reclaim support at $3145 and potentially rally towards $3300.