Ethereum Price Drop Below $4K Worry Traders, Why Is ETH Crashing?

ETH Crash Below $4K Spark Bearish Sign: Ethereum Price Drop Prediction

ETH price outlook is facing a tough time right now. In just one day, Ethereum price dropped below $4,000, falling a huge 8%. This has left many investors and traders wondering: Why is Eth crashing today?

Peter Schiff signals bearish market while stating: “Despite all the treasury companies buying the asset, #2 Crypto is now in the official bear market.”

Let’s discover whether this is just a short-term correction before a breakout or actual fall.

Expert Outlook on Why Is Ethereum Crashing Today? 

There’s not just one reason for the Ethereum price drop. Several key factors are playing a role in this bear market:

1. $23 billion in Bitcoin and ETH options expiring today. This often leads to high volatility, and we are already seeing it with the Eth crash.

2. The fear of US government shutdown by October 1 now at 67%, many people are worried about market corrections. Historically, government shutdowns cause panic, pushing the assets price even down

3. While good news about the economy usually sounds positive, the latest Q2 GDP data came in higher than expected at 3.8%. This could lead to higher interest rates, which is not great for the crypto market.

4. The Kobeissi Letter reported that Fannie Mae forecasts mortgage rates will remain high. This means inflation might keep rising. All of this is hurting market sentiment, adding to the $ETH price fall.

Technical ETH Price Outlook: How Low Can It Go?

Let’s take a closer look at the price drop from a technical perspective. What does the chart tell us?

The asset price is currently trading at $3,883.43, a big fall from its earlier levels. But its Relative Strength Index (RSI) is sitting at 41.75, which means it’s not yet in the oversold zone. 

So, while the Ethereum price drop below $4,000 is significant, there might still be room for it to recover soon. 

Support and Resistance Levels

• Support Level is around $3,800. This is the price where it could stop falling if there’s a bounce.

• Resistance Level is $3900, if it breaks above this level, then we might see a recovery toward $4,200.

Will Ethereum Go Up or Bearish Sign ? Price Prediction

After the recent ETH crash, the sentiment among investors is quite low, but top crypto analysts are hinting at a massive Ethereum price prediction amid a short term correction.

Short-Term Outlook:  $3,800 - $3,900
For the time being the price might stay within this range. If the price holds $3,800, we could see a small recovery.

Mid-Term Outlook: $3,900 - $4,200
After today’s Ethereum price drop, if it pushes past the resistance at $3,900, we might see it move toward $4,200 in the next 1-2 weeks.

Long-Term Outlook: $4,500 - $5,000
In the long term, if the market sentiment improves, the price could rise to $4,500 or even $5,000.

As seen in the above chart, the crypto industry is often manipulated by large players, so it might not be an easy ride to the top, but this might be the ultimate buy zone for traders looking to book profits as per my analysis.

Conclusion: What Happens Next: Fall Or Rise?

The Ethereum price drop below $4K is serious, but it’s not the end of the road. With key levels like $3,800 holding strong, it could recover soon.

For now, ETH crash remains in a bear market , but this could be the calm before the storm. So keep a close watch on the resistance level because its price movements will ultimately decide fall and rise.