Ethereum Price Analysis: Why ETH Could Drop To $2,500 In April

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The cryptocurrency Ethereum, which powers many smart contract platforms in the industry, experienced a significant drop in value. Within a week, it lost approximately 15% of its worth and fell below the important threshold of $3,000. This decline came as investors sought fresh liquidity due to uncertainty caused by recent tensions between Iran and Israel, which saw Iran launching attacks against Israel last week. Ethereum’s price had been attempting to reach new highs above $4,000, with the peak being at $3,725 in April, but these efforts were abandoned due to the geopolitical tensions.

If Israel is considering a response to an attack and pondering their next move, the value of risky investments like stocks and cryptocurrencies could decrease, potentially lessening the expected positive effects of the Bitcoin halving.

Currently, Ethereum remains stable above $3,000 with a price of $3,050 during US trading hours on Tuesday. This represents a roughly 3% decrease from its value over the past 24 hours.

Trading volume for Ethereum has risen slightly to $22 billion, indicating a rising curiosity amongst traders to sell Ethereum. In contrast, the market capitalization has persisted in its downward trend, now at $366 billion.

Ethereum Price Analysis: Assessing ETH’s Technical Structure Pre-Halving

The event of Bitcoin being halved has significant consequences beyond just the cryptocurrency market, and it may particularly affect altcoins in the following months. The connection between Ethereum’s price and that of Bitcoin influences investors’ decisions, leading them to buy not only Bitcoin but also other altcoins. Ethereum often takes the lead among these alternatives.

In light of the upcoming halving, it would be wise for both retail and institutional investors to think about purchasing dips. By doing so, they can take advantage of lower prices and potentially experience significant price growth akin to the bull markets of 2017 and 2021.

While it may be simple to suggest making adjustments to Ethereum now, the actual implementation involves overhauling both its technical and fundamental frameworks, which poses a greater challenge.

According to IntoTheBlock’s blockchain analysis, any potential Ethereum price rallies may encounter significant resistance due to the presence of substantial supply zones. The IOMAP (Insight Glass Map) model specifically points to a congested selling region, situated between $3,304 and $3,395.

Approximately 2.61 million Ethereum addresses have bought around 4.56 million units of ETH within this price range. This significant buying activity suggests potential resistance for Ethereum’s price climb above the $4,000 threshold.

Ethereum Price Analysis: Why ETH Could Drop To $2,500 In April

In the past few days, the support levels for Ethereum have become much weaker. Nevertheless, two specific areas have shown strength and could help mitigate further selling: The first is the price range between $2,846 and $2,937, while the second is the area around $2,664 to $2,755. If Ethereum’s price drops below these two support zones, it could lead to a more substantial decline towards $2,500.

ETH Eyes Oversold Conditions As Selling Pressure Explodes

Based on the current RSI reading of 35 for the neural network and its downward trend, there could be an increase in selling activity imminent. While the technical support at $3,000 remains relevant, it may not hold for much longer. Therefore, investors should consider getting ready for a potential further decline towards the $2,000 range.

Ethereum Price Analysis: Why ETH Could Drop To $2,500 In April

On the four-hour chart, Ethereum’s perspective shows that sellers are strongly in control at the moment. It’s important to mention that Ethereum is under all three bullish signals – the 20-day EMA, the 50-day EMA, and the 200-day EMA (represented by the blue, red, and blue lines on the chart). If this trend continues, we might see further decreases approaching $2,500.

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2024-04-16 19:52