Ethereum's price falls below $3,000 – Here's how and why?

Ethereum saw a 20% drop, testing critical support levels and facing heightened market uncertainty.
Vitalik Buterin outlined Ethereum’s ambitious 2030 roadmap, focusing on scalability, security, and decentralization.

Ethereum [ETH] has seen a dramatic price plunge, dropping about 20% within the past 24 hours and falling below the crucial $3,000 threshold.

Source: CoinMarketCap

The decline accelerated as it slipped beneath key support levels at $2,800 and $2,650. This pushed it into a bearish zone and raised alarms among investors.

With momentum shifting to the downside, many are left wondering if Ethereum can stage a recovery or if the worst is yet to come.

As the market struggles to find direction, all eyes are on these critical levels. These could either set the stage for a potential reversal or signal deeper losses ahead.

ETH: Bearish momentum intensifies

In the past 24 hours, $2.04 billion has been liquidated from the crypto market, with ETH alone accounting for $531 million of that total.

Source: X

Ethereum has experienced a sharp decline, falling below the crucial $3,000 level and underperforming Bitcoin.

The price quickly slipped beneath key support zones at $2,800 and $2,650, signaling the start of a bearish phase.

This downward pressure accelerated as ETH breached the $2,500 mark, dropping over 25% and reaching a low of $2,127, testing the $2,120 zone.

While temporary support has emerged, ETH is now consolidating its losses above $2,300. However, the broader trend remains decidedly bearish.

Source: TradingView

The technical outlook paints a grim picture. Ethereum has broken below both the 50-day and 200-day SMAs, confirming a significant trend shift.

The RSI has dipped to 28, indicating oversold conditions, which could hint at a potential relief rally.

Meanwhile, the MACD reveals deepening bearish momentum, with the MACD line continuing to diverge further below the signal line.

Ethereum: Bullish and bearish scenarios

Ethereum is at a critical juncture, with both bullish and bearish scenarios unfolding.

On the bullish side, if ETH reclaims $2,800 support, it could signal a reversal. A bullish MACD crossover would reinforce this outlook. Additionally, a broader market rally, particularly in Bitcoin, could provide further momentum.

On the bearish side, if Ethereum falls below $2,400, it may trigger stop-loss orders, pushing prices toward $2,200 or lower. Failure to reclaim the 50-day and 200-day SMAs would solidify bearish control.

Broader market factors could potentially exacerbate the decline.

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A look into Ethereum’s future

Looking to the long term, Vitalik Buterin’s 2030 vision for Ethereum outlines an ambitious roadmap.

The beam chain roadmap got criticism for the “2029” date, but what that criticism misses is that the beam chain roadmap is a completely separate and parallel workstream from the work that is happening already to meet users’ needs in the short term…

The roadmap seeks to reduce technical bloat, boost security, and improve scalability with innovations like “blobs” and verified light clients.

These, along with the Beam Chain, are crucial for Ethereum’s sustainable growth and future-proofing.

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Ethereum saw a 20% drop, testing critical support levels and facing heightened market uncertainty.
Vitalik Buterin outlined Ethereum’s ambitious 2030 roadmap, focusing on scalability, security, and decentralization.