Ethereum Price Breaches the $3,331 Support Level as it Drops Below $3K

The Ethereum price(ETH) has dropped below $3,251, its daily low on June 24, indicating a shift in the market structure from bullish to bearish. The broader crypto market bloodbath has triggered an unexpected race among cryptocurrencies, including Ethereum. Currently, Ethereum is down 5%, with the ETH/USD trading at $2,954, raising concerns about the ongoing sell-off. 

In line with the harsh market conditions, insights from the crypto analytics platform Lookonchain show that amid the intensive price slump, many traders might face liquidations as the ETH price falls below the $3,000 level. This comes as three whales have deposited 28,558 ETH worth approximately $82.2 million to Binance. This huge amount will be used to repay debts. 

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As the price of $ETH drops, many whales are about to face the liquidation of $ETH deposited in #Aave and #Compound.

3 whales deposited 28,558 $ETH($82.2M) to #Binance in the past 2 hours and sold to repay debt.https://t.co/4ynPQwessDhttps://t.co/ABzz0fceAt… pic.twitter.com/PNYtFvlnV1

— Lookonchain (@lookonchain) July 5, 2024

On the other hand, Ted Pillows, a well-known crypto investor, has mentioned on the X platform that ETH ETF trading could be a game changer for the Ethereum price.

He added:

‘’The ETH spot ETF will start trading before July 15, and it seems like the market is underestimating it.’’

#ETH looks way oversold now.
 
▫️ It has retraced all the ETF approval gains.
 
▫️ The ETH spot ETF will start trading before July 15, and it seems like the market is underestimating it.
 
IMO, $ETH ETF trading could be a game-changer 🚀
 
$2800 looks like a bottom for #Ethereum,… pic.twitter.com/da0jN0fMYw

— Ted (@TedPillows) July 5, 2024

Ethereum Statistical Data

Based on Coinmarketcap data:

• ETH price now – $2,954
• ETH market cap – $354.8 billion
• ETH total supply – 102.2 million
• ETH circulating supply – 102.2 million 
• ETH ranking – #2

The Ethereum price lost key support at $3,331 in the past few days. As a result, the altcoin has dwindled down, plunging to around the $2,851 mark, as the bulls are trying to step in to prevent further losses. 

Based on the technical outlook, the crypto price might continue to fall in the next 12 hours if the bulls don’t exert some pressure. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators suggest a bearish outlook. 

The MACD line has crossed below the MACD Signal line, tilting the odds in favor of the sellers. Traders see this technical occurrence as a sign that crypto has entered a negative cycle. Moreover, the gap between the two lines is growing, which warns that ETH’s bearish momentum is intensifying.

The Relative Strength Index(RSI) has also plunged towards the oversold, currently at 25. However, there may be no more downsides as ETH has already been oversold. This means a recovery may be at hand but is pending confirmation. Traders looking to capitalize on the prospective pullback should wait for the RSI to break and close above the 30 threshold in the one-day timeframe. 

On the other hand, ETH is trading below the 50-day and 200-day Simple Moving Averages (SMAs). In this scenario, $3,095 and 3,558 act as immediate resistance keys, accentuating the bearish outlook in the ETH market.

Ethereum Price Prediction: Can ETH Price Bounce Back to its Support? 

In ETH’s 1-day chart analysis, the Ethereum price could slump if the seller momentum increases, heading to around $2,819 support level. 

However, if the buyers initiate a buyback campaign and capitalize on the dip, Ethereum’s price might soar above the key resistance levels. In such a scenario, a candle stick close above the $3,571 price point within the next 24 hours could invalidate the bearish thesis.

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