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The Ethereum (ETH) price experienced a significant downturn this week, breaching the recently reclaimed monthly barrier of $1922. This decline signaled a failure to sustain a higher price, potentially leading to further selling pressure. Adding to the negative sentiment were concerns about the US Federal Reserve’s tightening policies. As a result, ETH witnessed a 5% drop over the last two days, reaching a low of $1825.
Also Read: Ethereum Price Prediction As Dips Become Profitable: Rebound To $2k In The Offing?
Ethereum Price Daily Chart
- The ETH price plunged below the $1922 flipped support, signaling a potential bull trap and triggering selling pressure.
- Healthy retracement could pour more buying orders at $18250 support
- The intraday trading volume in Ether is $8.7 Billion, indicating a 31% gain.
Source- Tradingview
On June 5th, the Ethereum price plunged below the flipped support of $1922, indicating a potential bull trap. This development led to increased selling sentiment among investors, further pressuring the ETH price.
As a result, the altcoin experienced a 5% drop in just two days, reaching a low of $1825. However, this support level aligned with the 38.2% Fibonacci retracement level provided a temporary pause in the falling prices, indicating a potential area where buyers might step in.
A retracement to the 32.2% FIB is still considered healthy for the overall trend and therefore, the second-largest cryptocurrency is in a bullish trend. If the coin price shows sustainability above $1825 this week, the buyers could rebound and challenge the $2000 mark.
Will Ethereum Price Witness Long Correction?
If the selling pressure continues and breaches $1825 support, the sellers will likely prolong the downfall in ETH price. In such a scenario, the coin holders could see a potential 7% decline to reach the long-coming support trendline. The support trendline represents a historically significant level where buyers have shown interest to accumulate dips.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
