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Ethereum Faces Crucial Support at $3,006, Will It Hold or Dip to $2,850?
The crypto market is abuzz with the recent price action of Ethereum (ETH), as it hovers around the crucial support level of $3,006. This pivotal juncture could determine the direction of the asset’s trajectory in the near term.
As of now, ETH is trading at approximately $3,100, testing this critical support level marked by the Fibonacci retracement level of 0.618. Should Ethereum fail to hold above this area, a potential drop to $2,850 may unfold.
In recent times, Ethereum has demonstrated a bullish trend within an ascending parallel channel. However, it’s essential to acknowledge short-term bearish pressure as a result of the 50-day moving average’s downward drift. This negative momentum has led ETH to test the lower boundary of this trendline, which served as a dynamic support.
Notably, StefanB, a renowned analyst, has cautioned traders who believed they had reached the bottom at $3,000 that their security is not yet assured. The expert warns that a swing failure is more likely than an immediate rebound, and a potential price plunge to $2,850 may ensue.
The 100- and 200-day moving averages have remained steady, but it’s essential for traders to monitor the 50-day moving average’s downtrend, as this could signal further bearish pressure. A failure to hold above $3,006 would likely see ETH testing a liquidity zone between $2,850 and $2,900 before possibly attempting to recover.
As Ethereum approaches this key level, investors should keep an eye on both the price action and technical indicators for signs of potential market reversals. If ETH manages to maintain support at $3,006, it could lead to a reversal towards higher targets such as $3,250 and $3,594.
On the other hand, if Ethereum fails to hold above this critical level, traders should prepare for the possibility of a decline to $2,850 or potentially even lower.
Source: cryptonewsland.com
