Ethereum price is closely following the star token Bitcoin, which has been printing massive bearish candles for the past few days. The ETH price also dropped from $2800 once again; that has turned this level into a crucial barrier. With this, the price has confirmed a correction that may go deeper if the bulls fail to defend the local support below $2400.
But why is the Ethereum price dropping? Will it ever reach $3000 in 2025?
The crypto markets were hard hit by the ongoing geopolitical tensions between the middle-east nations, Israel and Iran. the markets experienced more than a billion liquidations in the past 24 hours, which compelled the top token to trigger an inverse v-shaped rejection. Currently, the ETH price has lost all the gains it incurred in the past couple of days and hence an invalidation of a bullish pattern is believed to adversely impact the Ethereum price rally.
As seen in the above chart, the ETH price is still hopeful of a strong rebound as the levels remain within a parallel channel despite the rejection. On the other hand, the price continues to trade between 50 & 200 day MA that aim for a bullish crossover or the Golden cross. Meanwhile, the RSI remains stuck within a descending parallel channel, which could be a huge concern for the upcoming price action. Hence, the Ethereum price is now believed to test the lower support of the channel close to $2400, if the correction intensifies, followed by a strong rebound to the resistance.
Although the Ethereum bulls are defending the price from the critical support, the chart patterns have not yet confirmed the rise over the bearish trend. In the meantime, the Bitcoin dominance has begun to rise, which suggests the liquidity flow has yet again begun into the star token. The Altcoin season index had risen beyond Bitcoin, which was speculated to trigger an Altseason, but the levels have again dropped, hinting towards a BTC season.
The current market conditions are not in favor of an Altseason as the altcoins do not show any major change in the short term. This suggests the Bitcoin price could remain at the centre stage and hence the other altcoins are expected to follow. Hence, the Altseason may not trigger in the short term but with the change in the market conditions, one can expect the rise of altcoins, provided Bitcoin dominance drops below 55.
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