As the new trading week begins, the price of Ethereum has plummeted dramatically. The pair began the new trading session with a downward trend. Before a move to crucial levels, ETH appears to be in for another setback.
On Monday, the price of Ethereum fell into the negative zone due to excessive volume.The price has broken through the ascending channel, indicating that the pair is in selling pressure.The momentum oscillators have shifted to the bears’ side.
ETH Price Action
The ETH price flipped the critical 200-day and 50-day EMAs (Exponential Moving Averages) on the daily chart, signalling that buyers are on the defensive in the altcoin. Furthermore, since April 4, the price of ETH has dropped roughly 11%.
Now, the price has taken a little pause at the crucial support level of around $3,000. If the price closes below the specified level on a daily basis, more sellers will enter the market.
On the downside, the first lower target is $2,750, with no stoppages in between.
Furthermore, if the indicated level is breached, the token might fall to $2,000 before the directional bias is reassessed.
While the bearish forecast may appear to be valid, if ETH is sliced above the rising trend line on the daily chart, the bearish outlook will be invalidated. The pricing channel starts at $2,445.00 and ends at $2,445.00.
In a very bullish scenario, investors may look into the supply zone between $3,400 and $3,750.
Bearish signals all around for Ethereum
At the time of writing, the price of Ethereum was trading at $3,040, retesting a significant mark on the 4-hour chart. Extended goals of $2,987 and $2,930 might also be breached, according to the pessimistic thesis.
In the coming days, Ethereum’s price is anticipated to fully support the pessimistic prognosis. The bears’ volume profile indicates a high level of confidence.
As the Ethereum price lingers back into the oversold area at without any bullish price activity, the Relative Strength Index shows a lack of interest from Smart Money Investors.
To put it another way, bullish support does not appear to be present in the market at the moment. The smart contract token should not be counter-trend scalped, according to traders.
Ethereum’s price might drop to $2,900 and potentially $2,670, according to a Fibonacci projection tool.