Ethereum (ETH) has performed remarkably well throughout March. The second-largest cryptocurrency hit $4,000 twice and looked ready to soar to a new all-time high (ATH) as the entire crypto market soared.
The first quarter (1st quarter) of 2024 ended with important achievements for the crypto community. However, at the beginning of the second quarter, Bitcoin began a correction that dragged down Ethereum and the rest of the crypto market.
Are Ethereum Bulls in Trouble?
The king of altcoins has recorded red numbers over the past two days. ETH’s momentum recovery following the market downturn was halted after the token followed BTC and the rest of the market.
On Monday, crypto analyst Ali Martinez express concerns about the future of the Aether. He suggested that investors should “always be prepared for the best and worst” scenario.
Martinez considered “breaking the $3,400 support level” as the most brutal scenario for the second-largest cryptocurrency. This move would confirm a bearish pennant pattern that has formed on the daily chart.
If confirmed, the bearish formation could cause the ETH price to face a “major correction”, according to the analyst. The correction could see the price of Ether drop to $2,800.
Martinez reaffirmed his analysis after Ethereum. continued to dive in the early hours of this Tuesday. After the token fell below the above-mentioned support level, the analyst stated that falling below $3,460 was a problem for bulls.
#Ethereal falling below $3,460 is a problem for bulls! Given the lack of support, the chances of a new $ETH correction to $2,850 or less. pic.twitter.com/dFpnpZtBVM
-Ali (@ali_charts) April 2, 2024
“Given the lack of support”, failure to reclaim this support zone could trigger further corrections for ETH that could fall further below the previously predicted $2,800.
According to the In/Out of the Money Around Price (IOMAP) chart shared by Martinez, Ethereum shows potential price support between $2,846 and $2,905, with over 1.64 million ETH purchased at 1.99 million addresses at this level.
However, the chart also shows that an ETH rally could face resistance at $3,457 and $3,557.
ETH Follows Bitcoin Correction
Ethereum behaved no differently than the rest of the crypto market. Bitcoin Correction saw its price drop from the $70,000 mark to hover between the $65,000 to $64,000 price range.
The leading cryptocurrency has destroyed 7.1% of its price in the last 24 hours. Similarly, Ethereum’s red numbers show a 7.4% drop from yesterday and a 7.5% drop on Monday.
April 1st excitement to start the quarter.
Time to work. Let’s get this bread boys 🤝 pic.twitter.com/0458Qvrr4F
-Jelle (@CryptoJelleNL) April 1, 2024
On weekly and monthly intervals, the king of altcoins fell by 9.2% and 3.4%. However, its 3-month chart shows green numbers, with a positive increase of 39.74% since the beginning of 2024.
Despite the negative performance, Ethereum daily trading volume increased by a remarkable 80.80%, with over $22.5 billion traded in the last 24 hours, suggesting an increase in market activity. At the time of writing, ETH is trading at $3,283.
Ethereum is trading at $3,238 in the one-day chart. Source: ETHUSDT on Tradingview.com
Featured image from Unsplash.com, chart from TradingView.com
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