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Ethereum Price Analysis: What’s Next for ETH After 25% Daily Crash?

Ethereum Price Analysis: What’s Next for ETH After 25% Daily Crash?
The price of Ethereum has crashed, causing concern among investors about whether this marks the start of a new bear market or a short-term liquidation event. The drop in price was influenced by the breaking of the $3,000 level and 200-day moving average, which is a significant trend indicator. If the market fails to climb back above this level soon, a longer and deeper correction could be expected. Additionally, the price attempted to break out of a falling wedge pattern but ended up in a bull trap, leading to a significant drop. If a quick recovery does not occur, a consolidation between the $2,800 and $2,400 levels is likely for the coming weeks. When analyzing the futures market, it is noted that the open interest metric has not shown a significant decline despite the price drop. This suggests that if the crash is due to a liquidation cascade, there may be more liquidations and drops in the short term if selling pressure continues. Further research is needed to understand the underlying market dynamics.

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