Ethereum Price Prediction: What’s Next for ETH After Losing $3.5K Support?
ETH recently dropped below the $3.5K support level, sparking concerns about its next moves. However, there is hope that it could hold above $3K, especially with a significant amount of options set to expire soon. The recent market sell-off, triggered by the Fed’s rate cut, has led to a 14% pullback in ETH’s price over the past week, but it has stabilized around $3.3K for now.
Looking at the technical indicators, ETH is currently hovering above the 50-day EMA, which could act as a support level. A Fibonacci retracement tool suggests that the $3K mark is a crucial support level to watch to prevent further decline. The Directional Movement Index indicates that sellers still have the upper hand, but there is a possibility of a reversal if ETH can reclaim $3.5K.
Analyzing the liquidation heatmap, there is a concentration of short liquidations at key levels such as $3.5K, $3.73K, and $4.1K. However, there is also a build-up of leveraged positions at $3K, which could lead to liquidations if the price drops further. Despite market sentiment, top whale wallets have been accumulating ETH, indicating a bullish outlook for the cryptocurrency.
In conclusion, while there are challenges ahead for ETH, particularly in defending the $3K support level, there is optimism that it could reclaim $3.5K in the short term if certain conditions are met. Keep an eye on these key levels and indicators to gauge ETH’s next moves in the market.
