The token powering the moat prompt smart contracts platform in the industry, ETH lost 15% of its value in less than a week, sweeping below the crucial $3,000 in search of fresh liquidity. Ethereum price abandoned the push for highs above $4,000 at $3,725 — the highest mark reached in April due to uncertainty caused by tensions in West Asia after Iran attacked Israel last week.

As Israel deliberates whether to respond to the attack and how, risk assets including stocks and cryptos may tumble, further dampening the anticipated impact of the Bitcoin halving.

For now, Ethereum holds steady above $3,000 and trading at $3,050 during US business hours on Tuesday — maintaining nearly a 3% correction in the last 24 hours.

A minor increase in the trading volume to $22 billion signals growing interest among traders to short Ethereum. On the other hand, the downtrend has continued to slash the marketcap, which currently stands at $366 billion.

Ethereum Price Analysis: Assessing ETH’s Technical Structure Pre-Halving

Halving is an event pertinent to Bitcoin but whose impact transcends even the altcoin market, especially in subsequent months. The correlation of Ethereum price to BTC helps to drive sentiment, with investors booking positions not only in the largest digital asset but across the altcoin realm — with ETH often at the forefront.

Therefore, as the halving comes, it might be prudent for investors in the retail and institutional sectors to consider buying the dips. Such moves ensure buying low aiming to capitalise on the potential parabolic increase in prices mirroring the bull runs of 2017 and 2021.

However, it is easier said than done, keeping in mind the current correction significantly changes the technical and fundamental structures of Ethereum.

Based on blockchain data from IntoTheBlock any attempts by Ethereum price to recover will be met by steady new supply zones. As highlighted by the IOMAP model, the seller congestion area to watch runs from $3,304 to $3,395.

At least 2.61 million addresses purchased 4.56 million ETH in the above range. This robust supply zone signals the struggle bulls may encounter pushing Ethereum price beyond the $4,000 mark.

Ethereum IOMAP chart | IntoTheBlock

Support areas have in the last few days weakened significantly however, two regions stand out with the ability to absorb the selling pressure. This includes the range between $2,846 and $2,937 as well as $2,664 and $2,755. If Ethereum price slides below these two support regions, declines may plunge to $2,500.

ETH Eyes Oversold Conditions As Selling Pressure Explodes

The Relative Strength Index (RSI) neural and falling at 35 hints at incoming selling pressure. Its technical support at $3,000 although still in line, is unlikely to last longer, hence, it may be wise to prepare for another fall into the $2,000’s.

Ethereum price analysis chart | Tradingview

The outlook of ETH price on the four-hour chart greatly emphasizes the power sellers currently hold. Note that Ethereum sits below all three bull market indicators — the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 200-day EMA (the blue, red, and blue lines on the chart). If this outlook remains unchanged, further decline will start to materialize closing in on $2,500.

The post Ethereum Price Analysis: Why ETH Could Drop To $2,500 In April appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am