Ethereum price has faced intense selling pressure in the past couple of weeks despite starting June above $3,800. May was a bullish month for Ether which soared almost touching $4,000, thanks to the Securities and Exchange Commission (SEC) nodding to spot Ethereum ETFs.
The downturn to $3,300 in the last two weeks can be attributed to the larger macro environment. Investors in the crypto market have not been too amused by the Federal Reserve’s hawkish stance on interest rate cuts.
This coupled with increased profit taking ahead off the start of the actual trading of the spot ETF has seen Ethereum price dive toward the $3,000 mark.
Should the selling pressure increase this week, ETH price might fall below $3,000. Such a move could lead to cascading price dips as investors are likely to make irrational decisions to protect their capital.
However, in an incoming inflation report in the US, the PCE price index could bring some level of relief to the crypto market. Experts are also looking toward the US election likely to be bullish for crypto later in the year.
What To Do As Ethereum Price Grinds Toward $3,000
Ethereum is seen struggling to defend support at $3,300 during US business hours on Monday. Key indicators like the Relative Strength Index (RSI) validate the downtrend as it falls in the neutral area, getting closer to the oversold region.
The smart contracts token seems largely disadvantaged based on its position below two key Exponential Moving Averages (EMAs); the 20-day and 50-day.
A potential death cross pattern would further destabilize Ethereum. Its occurrence on the daily chart may trigger traders to consider shorting ETH, thus creating more headwinds for the token.
The area with the most potential for support lies around $3,000 as highlighted by the 200-day EMA. A dive to this level may result in two actions; the first being an immediate rebound toward $4,000 as liquidity is collected or a continued fall below $3,000.
A previous retest of this support at $3,000 extended the correction to $2,800 following the crypto sell-off in April and early May. A similar move is possible and one that may stretch to $2,500.
Nevertheless, the expected start of spot Ethereum ETFs trading on July 2 according to insight from analyst Eric Balchunas could be of immense relief to Ethereum.
ETFs will expose Ethereum to new markets among institutional investors who may be pressured to seek exposure to the crypto on traditional stock exchanges. Bitcoin rallied, achieving a new all-time high in March after the SEC approved the spot ETFs in January.
Ethereum price prediction shows the potential to gain momentum with increasing demand from the ETF. Therefore, this could be a good time to buy ETH and speculate on a stronger rebound in July and August.
The post Is Ethereum Price Going To Crash Below $3,000 Support? appeared first on CoinGape.
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