Ethereum Faces Price Drop After Breaking $3,000 Mark
Ethereum (ETH) has experienced a significant drop in price after surpassing the $3,000 mark. The ETH/USD chart indicates that the cryptocurrency’s price is currently within a larger uptrend, as represented by the orange trendline. Additionally, it is also within the February bullish trend, as indicated by the blue lines. However, the market is currently overbought, as evidenced by the bearish divergence on the MACD indicator.
The recent decrease in Ethereum’s price can be attributed to a wide bearish candle, signified by the red arrow on the chart. This candle has pushed the price down from above the psychologically significant $3,000 level. This decline comes after a period of significant growth, with the price of ETH increasing by around 30% since the beginning of February.
Earlier, we discussed the reasons behind the positive sentiment in the ETH/USD market. A post by Ethereum co-founder Vitalik Buterin regarding Werkle trees further bolstered this optimism. This upcoming technology is expected to bring several advantages, including reduced requirements for validators and faster network synchronization.
Despite the positive factors, the current market conditions suggest that Ethereum may be vulnerable to a pullback. The bearish divergence on the MACD indicator and the wide bearish candle pushing the price down from the $3,000 level indicate a potential shift in sentiment.
If a pullback occurs, it could potentially retrace around 50% of the February rise, leading to a price drop. In this scenario, Ethereum may fall to the median line of the orange channel, converging with the support area around $2,700.
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Analyst comment
Neutral news.
As an analyst, the market for Ethereum may experience a pullback due to bearish divergence on the MACD indicator and a wide bearish candle pushing the price down from the $3,000 level. If a pullback occurs, Ethereum could potentially retrace around 50% of the February rise, falling to the median line of the orange channel and converging with the support area around $2,700.
