Ethereum (ETH) Price Rally Pauses: Will Critical Support Levels Hold?
Ethereum Market Top Confirmed
Ethereum price could be seen trading at $3,921 at the time of writing. The second biggest cryptocurrency in the world has grown by 56% in the past month, rising from $2,500 to trading price. In doing so, the ETH in circulation also became profitable, and with the digital asset now less than 18% away from the all-time high of $4,626, the market top appears to have formed. A market top signifies the peak level attained by asset prices or indices before a subsequent decline. This often indicates a shift from bullish sentiment to potential downward trends or corrections.
Ethereum Supply In Profit
This confirms that a price fall is on the cards. Secondly, technical indicators are also turning bearish, confirming that the bull run is coming to a halt. The MACD (Moving Average Convergence Divergence) is a technical analysis indicator that measures the relationship between two moving averages of an asset's price, helping identify trend reversals and momentum shifts.
ETH Price Prediction
Ethereum price is trading above the three-year-old resistance block between $3,582 and $3,829. By the looks of it, ETH will mostly likely fall through this block to test the 50% Fibonacci Retracement line marked at $3,582. If the profit-taking is strong and the second-generation cryptocurrency falls further, a decline to $3,336 is possible. This would mark a 14% drawdown for Ethereum, bringing it back to early March's price.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.