Ethereum Hovers Around $3,000 Following $300 Million Selloff! Will Bulls Lose Their Defense?

The next Bitcoin halving event is just three days away, marking the fourth occurrence of this significant event for BTC. Currently, the crypto market is facing a sharp decline, which is typically observed before halving. Despite Ethereum’s price stabilizing at around the $3,000 mark, analysts view the current pullback as temporary, anticipating a recovery shortly after the halving.

Crypto Triggers Discount Trading

Over the last 24 hours, the crypto market has been on a heavy decline, triggering liquidations of over $300 million. The cryptocurrency market is currently facing significant volatility, particularly affecting Ethereum (ETH), which is seeing substantial price declines.

As the price of Bitcoin and Ethereum falls due to increased liquidations, QCP advises cautious investment, recommending purchasing at prices well below the current market rate. As a result, investors are set to strongly defend the support lines for Ethereum as it might face increased accumulation due to the rising “buy the dip” sentiment.

According to IntoTheBlock data, the ETH price has seen a decline in its MVRV ratio (market value to realized value), currently at 1.69. This suggests that Ethereum’s market value is nearing its realized value, or the value at the last transaction. This was triggered after traders booked their profits by selling their holdings at peak values. As a result, this plunges the current buying confidence.

Additionally, Ethereum/Bitcoin ratio recently touched a three year low of 0.046, last seen in 2021’s May. The recent breach of crucial support levels in the ETH/BTC pair may indicate a potential decline in Ethereum’s price in the short term.

Each time the ETH/BTC pair broke support lines, the ETH/USD pair experienced a 20% drop from its recent peak over a period of three to six months. It was noted that the loss of support in the ETH/BTC pair has occurred, but the full impact of this shift remains uncertain at this time. Hence, the ratio rebounded above its support lines to maintain buying momentum.

What’s Next For ETH Price?

Ether price is facing intense bearish pressure around the $3,300 mark. As a result, the price again dropped and dipped below the EMA20 trend line. However, bulls are aiming to defend further decline by holding the price above the psychological level of $3K. As of writing, ETH price trades at $3,057, declining over 4.9% in the last 24 hours.

If the price holds above $3K, it might trigger a recovery momentum and it might extend towards the 20-day EMA at $3,142, which is a critical level to monitor. Should the price retreat from this level, it might fall back to $2,870, and possibly further to $2,721.

Conversely, if the price remains above $3,100, it suggests that the market might continue to see sideways trading. A push above the 20-day EMA could strengthen the bulls, potentially leading to a surge towards $3,300. To continue the upward trajectory, buyers need to send the price above $3,600 and then the key resistance of $4K.