Ethereum
Ethereum Down 28%: What Happens If ETH’s $2,850 Support Fails?
- ETH was trading at an important support level.
- Key technical indicators suggest the possibility of a continued decline in the value of ETH.
Leading Altcoin Ethereum [ETH] is holding on to a crucial support level as its prices move in a descending channel.
A descending channel forms when the price of an asset continues to make lower highs and lower lows, indicating a broader downtrend.
Readings of ETH price movements on a daily chart revealed the formation of this channel on March 12. Since then, the coin’s value has decreased by 28%.
According to CoinMarketCap According to this data, the altcoin was trading at $2,915 at the time of writing.
A break below or a break above?
If ETH bulls fail to defend the coin’s current support level of $2,850, its price could initiate a decline below the lower trendline of the descending channel.
If this happens, the altcoin will trade at the $2,600 level.
AMBCrypto’s assessments on some key technical indicators have hinted at the possibility of a breakout below the current support level.
For example, major ETH momentum indicators have indicated that sales of the coin have exceeded its accumulation among market participants.
The coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were positioned below their respective neutral points at press time. ETH’s RSI was 39.52, while its MFI was 49.39.
The ETH Elder-Ray Index returned a negative value, confirming the current downtrend. This indicator measures the relationship between the strength of buyers and sellers in the market.
When it returns a negative value, it means bearish power is dominant in the market.
Likewise, the points that make up ETH’s Parabolic SAR were spotted above its price at press time. These points have been positioned in this way since the beginning of May.
The Parabolic SAR indicator is used to identify trend direction and potential reversals. When its dotted lines are placed above the price of an asset, the market is said to be falling.
Read Ethereum [ETH] Price prediction 2024-25
This indicates that the price of the asset has fallen and may continue.
Source: ETH/USDT on TradingView
If ETH bears force a breakout below the current support level, the coin’s next price could be $2,780. However, if this projection is invalidated, the altcoin could surpass $3,000.