The next Bitcoin halving event is just three days away, marking the fourth time this significant event has occurred for BTC. Currently, the cryptocurrency market is facing a sharp decline, which is usually observed before a halving. Even though Ethereum's price has stabilized around $3,000, analysts believe the current decline is temporary and expect a recovery soon after the halving.
Cryptocurrency triggered discount trading
Over the past 24 hours, the cryptocurrency market has fallen significantly, causing more than $300 million in liquidations. The cryptocurrency market is currently facing significant volatility, with Ethereum (ETH) being particularly affected, with significant price declines.
As Bitcoin and Ethereum prices fall due to increased liquidations, QCP advises cautious investment and recommends purchasing at prices well below current market rates. As a result, investors will strongly defend Ethereum’s support lines. This is because they may face an increase in accumulation due to a growing sentiment of “buy on the spur of the moment” sentiment.
According to data from IntoTheBlock, the MVRV ratio (market value to realized value) of ETH price has been declining and currently stands at 1.69. This suggests that Ethereum's market value is approaching its realized value, or the value at the time of the last transaction. This was triggered after traders sold their holdings at the highest prices and booked profits. As a result, this causes current purchasing intent to plummet.
Additionally, the Ethereum/Bitcoin ratio recently hit a three-year low of 0.046, which was last seen in May 2021. The recent violation of a key support level for the ETH/BTC pair could indicate a potential decline in Ethereum price in the short term.
Each time the ETH/BTC pair broke through the support line, the ETH/USD pair experienced a 20% decline from its recent peak over a period of 3-6 months. It has been noted that a loss of support for the ETH/BTC pair has occurred, but the full impact of this change is still uncertain at this time. Therefore, the ratio rebounded above the support and maintained the buying momentum.
What’s next for ETH price?
Ether price is facing intense bearish pressure near $3,300. As a result, the price fell again and fell below the EMA20 trend line. However, bulls aim to prevent further decline by keeping the price above the psychological level of $3,000. At the time of writing, ETH price is trading at $3,057, down more than 4.9% in the past 24 hours.
If the price sustains above $3,000, it could trigger a recovery momentum and extend towards the 20-day EMA at $3,142, which is an important level to watch. If the price pulls back from this level, it could fall to $2,870 and further to $2,721.
Conversely, if the price remains above $3,100, it suggests that the market may continue to trade sideways. A breakout above the 20-day EMA will strengthen the bulls and could lead to a surge towards $3,300. To continue the upward trajectory, buyers will need to send the price above his $3,600 level and then to the major resistance at his $4,000 level.
