Ethereum Price Analysis: Is ETH About to Plunge to $3K After Recent Rejection?

Ethereum’s attempt to surpass the $4K crucial mark failed, leading to a sharp rejection and raising concerns about sellers’ dominance in the market. Fear is mounting, with expectations of a potential sell-off in the coming days if key support levels fail to hold. Technical Analysis By Shayan The Daily Chart Ethereum recently experienced a spike, targeting the crucial $4K resistance. However, substantial selling pressure at the Fair Value Gap between $3.7K-$3.8K caused a firm rejection. It has left ETH approaching its previous swing low at $3.3K. A daily candle close below this level could signal further bearish momentum. Nevertheless, in the broader picture, the $3K support region remains the buyers’ critical defense zone, as it aligns with the 100-day critical MA. Ethereum may experience a significant decline in the middle term if the price breaks below this region. The 4-Hour Chart On the lower timeframe, Ethereum’s price action formed a three-drive pattern at the $4K region, accompanied by a bearish divergence on the RSI indicator. This bearish reversal pattern highlights a loss of buying momentum. The asset has since breached the crucial $3.5K support region, triggering a pullback and subsequent cascade. Currently, Ethereum is approaching a key support region at its major swing low of $3K, aligning with the 0.5-0.618 Fibonacci retracement levels. A failure to hold this support could lead to further declines, with potential targets at lower price levels in the mid-term. Onchain Analysis By Shayan The sustainability of any market price surge often relies on rising Funding Rates, which reflect robust demand in the derivatives market. Without this increase, upward trends may falter. Notably, this rise does not need to occur immediately, but its absence during a rally raises concerns about the market’s strength. During the recent Ethereum rally, Funding Rates sharply increased midway through the upward trend, suggesting a delayed influx of demand. However, after ETH faced rejection at the $4K resistance, Funding Rates declined significantly. This decrease highlights a reduced commitment from traders in the derivatives market and insufficient demand to maintain the uptrend. If Ethereum fails to hold above the $3K support, the market could face increased selling pressure and deeper corrections. Hence, the $3K support level remains crucial for ETH’s next move. The post Ethereum Price Analysis: Is ETH About to Plunge to $3K After Recent Rejection? appeared first on CryptoPotato .