If Bitcoin Drops Below $60,000, Here’s What May Happen to the Ethereum (ETH) Price Rally!
The post If Bitcoin Drops Below $60,000, Here’s What May Happen to the Ethereum (ETH) Price Rally!
The Ethereum price is constantly forming lower highs and lows, displaying the growing strength of the bears as market dynamics have lost their stability. Along with Bitcoin prices, Ethereum prices have also been slashed to some extent, while the bulls are trying hard to defend the lower support. Now that the trend has flipped in bearish favour, it could be interesting to watch whether the price will knock back below $3000 or sustain above the stages.
The fact that the second-largest token has consistently recovered from below $3000 in recent months suggests that there is significant demand. But as the latest candle is closing below the pivotal 200-day MA, the trade setup points to another visit below the levels. As a result, it implies that the price can be vulnerable to yet another reversal, forcing the token into the bidding range.
The price of ETH is now holding onto a critical region of support; if this is lost, a protracted bearish decline might confirm one last significant fall.
Since the spot ETF’s inception, the price of ETH has decreased by more than 10%, and in the last few hours, the open interest has decreased by $250 million. Additionally, if the cost fails to raise levels above the 200-day moving average, it could indicate that a correction is imminent. At $3,160, the price is testing the lower support, and a breakdown looks likely. Therefore, a retreat below $3000 might result in a decline between $2902 and $2867.
In addition, since March, the average Ethereum cost has decreased dramatically from $10 million to $3 million. Additionally, since May, Ethereum’s TVL has drastically decreased, which is indicative of a decline in DeFi activity. Furthermore, given that 3.69 million addresses have been owned by 1.24 million addresses, the region around $3000 can be regarded as an essential support zone. But the crucial support is at $2700, where there are 11.11 million addresses that own 59.07 million ETH tokens, which seems to be a larger amount.
As a result, a bounce from $2650 to $2700 seems more likely, with the chance of another reversal within the next few days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
X : cryptomantr