ETH / USD slumped and fell below $ 3,000, while Bitcoin suffered further losses due to negative market sentiment
Ethereum has fallen below critical support of the$3,000 demand zone after falling 5.5% over the past 24 hours. The downturn at ETH came as Bitcoin (BTC) also reduced its recent gains with a 3% drop, testing prices by $ 42,150.
Ethereum’s price performance suggests that the bears could push prices down even further. In the event of a breakdown, ETH / USD would likely hit a low of $ 2,650. On the other hand, a daily closing price above $ 3,000 could lead to new bids targeting highs of $ 3,500 over the week.
Ethereum Technical Outlook
The daily chart shows ETH / USD above the 0.5 Fib retracement level as bulls look for new momentum towards the critical $3,000 mark. The 100 SMA ($2,763) provides an important buffer zone, suggesting that a daily closing price is possible above an ascending trend line.
In this case, the upside target would be to reach the 0.618 Fib level ($3,143) and then move into the supply zone near the 50 SMA ($3,298). If this zone becomes a support level, it could lead to an influx of buy orders targeting the $3,500 mark (an important supply replenishment zone currently near the 0,786 Fib level).
ETH / USD Daily Chart. Source: TradingView
The 4-hour chart for Ethereum shows that ETH / USD is below the simple moving averages of 50 and 100, with the falling curves of the indicators indicating further downward pressure. Diving the RSI below the equilibrium line also increases the potential for new losses.
From a technical point of view, buyers are likely to push higher if they make the $ 2,871 range in support. This range is characterized by the 0.5 Fibonacci retracement level of macro movement from $ 1,717 to $ 4,025.
Should ETH price break down from here, there could be another decline towards another horizontal anchor line around $ 2,763. If prices continue to fall, the next support could be around $ 2,650 at the September 21, 2021 lows.
ETH / USD 4-hour chart. Source: TradingView
According to technical analyst Michael van de Poppe, the correction below $ 3,000 on Ethereum suggests that the outlook for 2021 may be in line with the course of 2017. In this case, ETH is still bullish in the long term, even with a possible expansion of the downtrend.