Ethereum Hits Crucial Level After Breaking Below $3,000
Ethereum has started the week in sluggish mode after its price suffered another 7% dip. While many market participants are displaying signs of fear, the number two crypto appears to have found vital support.
Ethereum Finds Stable Support
Ethereum broke below $3,000 earlier today as the cryptocurrency market continues to bleed. The global crypto market cap shed more than $280 billion following the latest dip.
ETH is 36.8% short of its all-time high price of $4,870 recorded in November 2021. It’s lost about 17.4% of its value since the beginning of 2022.
Despite the significant losses it has incurred over the last few weeks, ETH appears to have found stable support.
The 50-week moving average on the weekly chart is holding strong after facing its first test since May 2021. Ethereum has successfully maintained this critical support level throughout previous bull cycles, which may hint that a rebound is on the horizon.
The Fibonacci retracement indicator, measured from the June 2021 low of $1,700 to the November 2021 all-time high of $4,870, suggests that Ethereum must regain $3,300 as support to attract buyers. Moving past this resistance level could generate enough bullish momentum to push ETH toward $3,700 or $4,120.
If Ethereum fails to gain the strength it needs to rebound, a breach of the 50-week moving average could be imminent. Failing to hold the support level could generate panic among investors, increasing the potential for another sell-off. ETH could then crash toward the 78.6% Fibonacci retracement level or the 100-week moving average. These key areas of interest sit at $2,400 and $1,700 respectively.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.