Is Ethereum ETH Heading Towards a Major Crash as Price Falls to 3093
Key Points in Ethereum Analysis by Crypto Expert Wolf
Ethereum (ETH), the leading altcoin by market capitalization, faced a notable downturn recently, with its native token Ether sliding 6% to approximately $3,092 on July 4. This decline represents its most significant daily drop in three weeks. However, seasoned crypto analyst Wolf contends that Ethereum now stands at a critical juncture, poised for a potentially bearish move that could profoundly impact its future valuation.
The current decline in Ethereum’s value is primarily attributed to concerns over a potential downturn in the broader Bitcoin market and waning institutional interest. According to Wolf’s analysis, ETH is currently testing the crucial diagonal support level, and a successful breach below this threshold could signal further downward pressure. This support level has played a pivotal role in maintaining Ethereum’s recent price stability.
Wolf’s tweet on July 4 illustrated the precarious situation: “ETH is attempting a bearish move by breaking below the diagonal support. For the bulls to regain control, the daily candle needs to close with a wick and return above the diagonal. Failure to do so could spell trouble for the bulls.⚠️”
To prevent a bearish trend and regain control, Ethereum bulls must ensure that the daily candle concludes with a wick above the diagonal support. Such a development would indicate ongoing bullish momentum and potential for price recovery. Conversely, a failure to close above this level could intensify selling pressure and lead to further price declines, presenting a critical juncture for Ethereum traders and investors alike.
Looking ahead, the imminent listing of an Ethereum Exchange-Traded Fund (ETF) could potentially provide a much-needed boost to Ethereum’s price. With the final submission of S-1 Form for ETH ETF applications set for July 8, speculation is rife that SEC approval may follow in the upcoming week. Such approval could trigger significant market activity, aiming initially at price targets of $3,413 and $3,475.
Technically, Ether’s recent losses are part of a broader retracement initiated after encountering resistance at the 200-4H exponential moving average (EMA) and the upper boundary of its descending channel. As of July 4, ETH is testing the lower trendline of this channel for potential support, amidst current trading at $3,020, reflecting a decline of 6.8%. Despite this setback, trading volumes have surged by 43% over 24 hours, underscoring continued market activity, with Ethereum’s market capitalization standing at $372 billion.