Ethereum (ETH) finds itself at a critical juncture as its price hovers near the $3,000 mark amidst a flurry of bearish pressure. Over the past 24 hours, both Bitcoin (BTC) and Ethereum have experienced significant losses, with each shedding 7%-8% of their value, setting the stage for a potential deeper decline.
Key among the concerns for Ethereum holders is the $3,500 level, which has served as a crucial short-term support. Analysts, including Ali Martinez, have sounded alarms about the emergence of a bear pennant formation, suggesting the possibility of a drop to $2,800. The looming question now is whether these bearish predictions will materialize or if Ethereum will manage to hold its ground.
While some analysts point to the bear pennant formation as a cause for concern, others see potential support zones that could thwart the bears’ advance. CryptosNewss analysis highlights the $2,800-$2,900 region as a likely area of support, given Ethereum’s consolidation in February before its surge beyond $3,000. Additionally, the $3,100 region is identified as a lower timeframe bullish order block, which could provide further resilience against downward pressure.
Despite the prevailing bearish sentiment, certain on-chain metrics paint a more optimistic picture for long-term investors. The 30-day MVRV ratio, which has remained below zero since March 18th, indicates that Ethereum is undervalued. Moreover, while the mean coin age has shown an upward trend since February 9th, suggesting increased hodling behavior, the overall network growth remains robust, with a growing number of new addresses being created.
Nevertheless, the path forward remains uncertain, with total open interest declining alongside the price, signaling short-term bearish sentiment. Yet, amidst the current market turbulence, opportunities may emerge for strategic buyers. Analysts suggest that a drop to either $3,100 or $2,600 could present attractive buying opportunities for those with a long-term investment horizon.
As Ethereum braces for potential further price fluctuations, investors are advised to exercise caution and employ risk management strategies tailored to both technical analysis and on-chain metrics. With the balance of power hanging in the balance between bulls and bears, the coming days may prove decisive for the trajectory of Ethereum’s price.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.