Ethereum hits crucial level after dropping below $ 3,000

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Key takeaways Ethereum fell below $ 3,000 today. The 50 week moving average is now stable support. ETH needs to go above $ 3,300 in order to rebound quickly. Share this article

Ethereum started the week in gloomy mode after its price suffered a further 7% drop. While many market participants are showing signs of fear, number two crypto seems to have found vital support.

Ethereum finds stable support

Ethereum fell below $ 3,000 earlier today as the cryptocurrency market continues to bleed. The global crypto market capitalization has lost over $ 280 billion following the latest drop.

ETH is 36.8% below its all-time high of $ 4,870 recorded in November 2021. It has lost about 17.4% of its value since the start of 2022.

Despite the significant losses it has suffered in recent weeks, ETH appears to have found stable support.

The 50-week moving average on the weekly chart holds up after facing its first test since May 2021. Ethereum has managed to maintain this critical support level throughout previous bull cycles, which may suggest that a rebound is on the horizon.

The Fibonacci retracement indicator, measured from the June 2021 low of $ 1,700 to the all-time November 2021 high of $ 4,870, suggests that Ethereum needs to recover $ 3,300 as support to attract buyers. Exceeding this resistance level could generate enough bullish momentum to push ETH towards $ 3,700 or $ 4,120.

Source: TradingView

If Ethereum fails to build the strength it needs to rebound, a break in the 50-week moving average could be imminent. Failure to maintain the level of support could generate panic among investors, increasing the potential for another sell-off. ETH could then collapse towards the 78.6% Fibonacci retracement level or the 100 week moving average. These key areas of interest are $ 2,400 and $ 1,700, respectively.

Disclosure: At the time of writing, the author of this article owns BTC and ETH.

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