Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Ethereum Price Analysis: Critical Technical Warning Flashes for ETH as $2.1K Seems Imminent

Ethereum Price Analysis: Critical Technical Warning Flashes for ETH as $2.1K Seems Imminent

CryptopotatoCryptopotato2024/09/06 16:00
By:Author: CryptoVizArt

Ethereum has been notably bearish, marked by a sharp decline following a pullback to the lower boundary of a broken wedge, coupled with the formation of a death cross.

Despite this, the price is nearing a crucial support level that could lead to a short-term sideways consolidation.

Technical Analysis

By Shayan

The Daily Chart

Ethereum has been in a strong downtrend, instilling fear and uncertainty among market participants. Low inflows into spot ETH ETFs have further underscored this sentiment, signaling reduced investor interest and the appearance of the death cross, where the 100-day moving average crosses below the 200-day moving average.

Following a rejection at the lower boundary of the multi-month wedge and the 0.5-0.618 Fibonacci levels, Ethereum has continued its decline, confirming the strength of sellers in the market.

However, the price is approaching a critical support zone, defined by the static $2.1K level and the 0.786 Fibonacci retracement level at $2,067. This area is expected to have a substantial demand, which could lead to a short-term pause in the downtrend, with potential sideways consolidation before Ethereum’s next move is determined.

The 4-Hour Chart

On the 4-hour chart, ETH was firmly rejected from the resistance zone between the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci levels, resulting in continued bearish momentum toward the $2.1K support. This level has held previously, particularly in early August, suggesting it might attract buyers looking to accumulate at these price points.

If demand resurfaces at the $2.1K mark, Ethereum may experience a temporary consolidation phase, pausing the downward pressure. However, if this crucial support is breached, it could trigger a long-liquidation event, potentially driving the price down toward the $1.8K region.

The coming days will be crucial in determining whether Ethereum can hold this support or if a deeper correction is on the horizon.

Onchain Analysis

By Shayan

Ethereum’s value is fundamentally tied to its decentralized network and the active engagement of its users. One key metric to gauge this engagement is the number of unique active addresses on the network, which can serve as a valuable proxy for Ethereum’s overall market demand and valuation.

The chart showcases the 14-day moving average of Ethereum Active Addresses, which represents the total number of distinct active addresses, including both senders and receivers of ETH transactions. Since late March 2024, this metric has rapidly declined, highlighting a drop in user activity and transaction volumes.

This downward trend reflects a bearish market sentiment, with reduced demand and lower investor participation. For Ethereum to recover and potentially embark on a long-term sustainable rally, this trend must reverse. A resurgence in the number of active addresses would indicate growing interest and accumulation of Ethereum, signaling more robust demand and the possibility of a bullish market reversal.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

The Blockchain Group in France raises €8.6M to increase its Bitcoin holdings.

The Blockchain Group in France raises €8.6M to increase its Bitcoin holdings.French Blockchain Company Bets Bigger on BitcoinA Strategic Investment in Digital ValueFrance’s Growing Crypto Confidence

Coinomedia2025/05/21 19:16
The Blockchain Group in France raises €8.6M to increase its Bitcoin holdings.

TAO Set for Major Token Unlock, But Nexchain is Leading the Pre-Bull Run Phase With Huge ICO Raise

While TAO prepares for a supply shock, Nexchain is racing full speed ahead, gaining momentum with each stage of its presale. Its AI-powered Layer-1, 10% gas price incentives, and ultra-fast transaction speeds elevate it to the status of an ecosystem with real-world viability.Nexchain is a lightning-fast, AI-powered Layer-1 that pays you gas rewards.Nexchain Tokenomics: Designed for Long-Term GrowthTAO Token Unlock: $89 Million Supply Set to Hit the MarketFinal Words: Nexchain is Outpacing the AI Pack

Coinomedia2025/05/21 19:16
TAO Set for Major Token Unlock, But Nexchain is Leading the Pre-Bull Run Phase With Huge ICO Raise

Tether Mints $2B USDT on TRON, Tops Ethereum Supply

Tether mints $2B USDT on TRON, pushing its supply above Ethereum. What this shift means for the stablecoin marketTRON Overtakes Ethereum in USDT SupplyWhy Tether Chose TRON for Massive USDT MintingWhat This Means for the Crypto Landscape

Coinomedia2025/05/21 19:16
Tether Mints $2B USDT on TRON, Tops Ethereum Supply