Ethereum Could Drop Below Its Crucial $3,000 Level

Ethereum’s price has fallen below the moving average lines after being rejected at the $3,400 level.

ETH price long-term analysis: bearish

The decline has paused above the 50-day SMA support. Since November 4, buyers have repeatedly tried to keep the price above $3,400 but have been unsuccessful.

Today, Ether has dropped to its crucial support above $3,000, which coincides with the 50-day SMA support. The cryptocurrency is currently trading above the 50-day SMA support but below the 21-day SMA resistance. The largest altcoin risks further decline if the bearish trend breaks below the 50-day SMA support. A break below the 50-day SMA support or the $3,000 low will send Ether to its previous bottom of $2,270. Meanwhile, the price is fluctuating between the moving average lines. Ether is currently at $3,102.

Technical indicators:

• 
  Resistance Levels: $4,500 and $5,000

• 
  Support levels: $3,000 and $2,500

ETH price indicators analysis

The moving average lines are sloping upwards, but the price has fallen to the area above the 50-day SMA support and below the 21-day SMA resistance. The previous trend is indicated by the 21-day SMA being above the 50-day SMA support. The price bars on the 4-hour chart are below the moving average lines, which are sloping upwards.

What is the next direction for ETH?

Ethereum has paused its decline above the $3,000 level. Since January 8, the largest altcoin has traded above $3,000 but below $3,400.

Today, the price has dropped and is hovering above its critical level of $3,000. The altcoin will trend when either the $3,000 or $3,400 support levels are breached.

Disclaimer. This analysis and forecast are the personal opinions of the author. The data provided is collected by the author and is not sponsored by any company or token developer. This is not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coinidol.com. Readers should do their research before investing in funds.