The overnight crypto market decline took a huge toll on altcoins, immediately halting their upward recovery. Amid the crash, the largest altcoin, Ethereum, fell overnight, with ETH price falling by 2.50%.
The recent turmoil combined with market-wide concerns about a sharp correction are warning of a fall to $3,000. However, Bitcoin's history of halvings, which result in long-term price trends and altcoin seasons, suggests the possibility of a bull market.
To learn more about Ethereum's future range, check out our ETH price prediction.
The final nail in the coffin or the final pullback?
Ethereum, which has a market capitalization of $382 billion, has fallen over the past few weeks, accounting for an 18% decline. However, the decline in ETH price is supported at the 50% Fibonacci level of $2850.
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The recent correction has extended the consolidation between the 50% and 61.80% Fibonacci levels on the weekly chart. However, a low rejection from the 50% Fib level leading to a hold above $3000 invites a bullish break.
Currently, ETH price is trading at $3,140 on an intraday Doji candlestick reflecting altcoin indecision. Given that the market is avoiding further declines, Ethereum may find an opportunity to resume its uptrend.
Technical indicators:
MACD: The bearish crossover between the MACD and the signal line on the weekly chart stems from the recent pullback. However, if ETH price recovers from the 50% Fib level, it could return to a positive trajectory.
DMI: The ADX line is witnessing a decline reflecting the loss of trend momentum. Additionally, the VI line is preparing for a bearish cross due to a pullback phase.
Will ETH price challenge $4,000?
Considering the resurgence of the biggest altcoin bull run, ETH price could break through the overhead resistance at $3,265, suggesting a breakout entry opportunity. The bulls could challenge the solid resistance level at $4,000, leading to a 25% rally.
Conversely, the possibility of a drop to $3,000 is minimal but concerning.
