Ethereum Hits Crucial Level After Breaking Below $3,000

Key Takeaways

Ethereum ( $1,341.45 ) dipped below $3,000 today.
The 50-week moving average now holds as stable support.
ETH needs to breach $3,300 to be able to rebound swiftly.

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Ethereum ( $1,341.45 ) has started the week in sluggish mode after its price suffered another 7% dip. While many market participants are displaying signs of fear, the number two crypto appears to have found vital support.

Ethereum ( $1,341.45 ) Finds Stable Support

Ethereum ( $1,341.45 ) broke below $3,000 earlier today as the cryptocurrency market continues to bleed. The global crypto market cap shed more than $280 billion following the latest dip.

ETH is 36.8% short of its all-time high price of $4,870 recorded in November 2021. It’s lost about 17.4% of its value since the beginning of 2022.

Despite the significant losses it has incurred over the last few weeks, ETH appears to have found stable support.

The 50-week moving average on the weekly chart is holding strong after facing its first test since May 2021. Ethereum ( $1,341.45 ) has successfully maintained this critical support level throughout previous bull cycles, which may hint that a rebound is on the horizon.

The Fibonacci retracement indicator, measured from the June 2021 low of $1,700 to the November 2021 all-time high of $4,870, suggests that Ethereum ( $1,341.45 ) must regain $3,300 as support to attract buyers. Moving past this resistance level could generate enough bullish momentum to push ETH toward $3,700 or $4,120.

Source: TradingView

If Ethereum ( $1,341.45 ) fails to gain the strength it needs to rebound, a breach of the 50-week moving average could be imminent. Failing to hold the support level could generate panic among investors, increasing the potential for another sell-off. ETH could then crash toward the 78.6% Fibonacci retracement level or the 100-week moving average. These key areas of interest sit at $2,400 and $1,700 respectively.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

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