Ethereum Price Hits Critical $3,900 Support: What’s Next for ETH?

Ethereum Price Faces Critical Support Test at $3,800: Will It Recover?

Ethereum price has dropped by 5% over the past 24 hours, reflecting a broader bearish trend in the market. After experiencing a cool-off, Ethereum’s value fell below $4,000, marking a significant decline. 

In the last one week, the cryptocurrency has dropped by 16%. The total crypto market too was hit, losing 3.56% over the past 24 hours and continuing a 7-day loss of 11.32%.

Currently, Bitcoin is hovering around $111,000, showing signs of struggle in the current market conditions. Ethereums recent performance, which saw a 4.2% decline to $3,991, has underperformed compared to the broader crypto market, which fell 3.94% in the same period.

A number of reasons are behind the fall of Ethereum. Risk-off sentiment has been triggered by the market due to geopolitical tensions, especially the increasing fear of a trade war between the U.S. and China. Moreover, outflows in Ethereum spot ETFs have also been observed with a withdrawal of up to 429 million, which is a third day of decline.

Ethereum Price Faces Critical Support Test Ahead

According to market analyst Ted, the Ether price has just broken the critical support level of $4,060. The second major support of ETH is at $3,800. A failure of this level will lead to the possibility of Altcoin plummeting to the $3,400 to $3,600 level.

Once Ether is able to regain the position of the $4,060 and $4,250, it might just be a way to the successful ascendancy in the near future.

BlackRock Clients Offload $303.82 Million in Ethereum Holdings.

In a significant move, The BlackRocks have sold about 303.82 million Ether. This recent move is against the fluctuating markets conditions and increased interest in the digital asset area.

The deal, which included a large sum of ETH, highlights the crisis of the cryptocurrency markets, with investors basing their decisions on the possible profit and loss.

Will ETH Price Recover Soon?

As of the reporting time, the ETH price hovered at $3,932, showing a decline of 1.27%. The Ether price has been trading in a downward direction in a downward channel following its high point of $4,017 earlier. The level of support currently is at $3,900, and the resistance has been noted at $4,300.

Source: ETH/USD 4-hour chart: Tradingview

The technical indicators have shown that the Moving Average Convergence Divergence (MACD) has seen a negative momentum. The MACD line is below the signal line, which also contributes to the bearish mood.

The price is undergoing a strong downward trend, and major technical signs suggest that the trend is going to continue.

The price is already approaching key points of support, and the price might continue to fall below $3,900, indicating additional bearish moves. The turnaround, however, may depend on the final breakout above the resistance levels, which could provide an opportunity for recovery.