Ethereum (ETH) Price Correction Under $3,000 Possible As Bulls Lose Crucial Support

Ethereum (ETH), the world’s second-largest cryptocurrency, has encountered notable selling pressure following a rebound last week that propelled its value above $3,600. However, over the past two days, the Ethereum (ETH) price has succumbed to bearish sentiment, with its price slipping below the $3,400 mark once again.

Will Ethereum Price Tank Under $3,000?

In an analysis provided by crypto analyst Ali Martinez, concerns arise as Ethereum falls below the critical support level of $3,460. This development presents a challenge for bullish sentiment in the market, potentially paving the way for further downward movement in Ethereum’s price.

With the absence of robust support at this level, the likelihood of a continued correction in Ethereum’s price trajectory toward $2,850 or even lower becomes more pronounced.

In recent market developments, QCP Capital has reported notable activity within the last 24 hours, particularly in the options trading arena for Ethereum (ETH). An increased interest has been observed in selling calls and acquiring puts for both cryptocurrencies.

This surge in options trading activity has resulted in downward pressure on spot ETH price and has also contributed to maintaining high levels of implied volatilities. Specifically noteworthy is the heightened demand for puts compared to calls in the front-end of Ethereum options, leading to a significant downside risk reversal skew of -5% in April.

ETH Price Action Ahead

On the upside, the immediate resistance for Ethereum lies around the $3,400 mark, which coincides with the 23.6% Fibonacci retracement level of the recent downward movement from the $3,654 high to the $3,324 low.

A significant resistance level awaits at around $3,420, aligning with both the trend line and the subsequent hurdle at $3,450. Surpassing this level could lead to a test of the 50% Fibonacci retracement level of the aforementioned downward move.

Further resistance is anticipated near $3,520, along with the 100-hourly Simple Moving Average (SMA). A successful breach above this level might pave the way for bullish momentum, with potential targets at the $3,650 barrier.

On the other hand, Ethereum’s on-chain indicators have been showing strength. The non-zero Ethereum addresses have surged to a new all-time high in recent weeks.