Ethereum (ETH) Price Decline: How Much Further Could ETH Fall?

The recent price movement of Ethereum (ETH) saw a dip to $2,318 during overnight trading on September 4th, 2024. Over the past ten days, ETH has experienced a nearly 19% decline. This downward trend raises questions about the potential for further downside in ETH’s price.

Market analysts are anticipating a broader market downturn:

– Nvidia recorded a 9% drop in a single day.
– This decline in Nvidia’s stock price has led to concerns about a potential crash in cryptocurrency markets.
– Additionally, the US Dollar has strengthened by 2% in recent days.

Given these market dynamics, Ethereum is unlikely to remain immune to the overall market weakness. The key question is whether ETH can withstand the pressure in a bearish environment.

Looking at the ETH chart, on August 2nd, 2024, when ETH was trading above $3,000, InvestingHaven’s projections indicated an anticipated drop in the August-September 2024 period. The analysis pointed to a volatility phase during that timeline.

In the current scenario, the ETH price chart does not exhibit a strong outlook. However, ETH has been holding support around the $2,200 mark. This support level is crucial in determining the future price action of ETH.

The chart analysis also highlights the significance of a long-term rising trendline and the 50% Fibonacci retracement level, both of which provide essential support for ETH’s price.

Despite the prevailing bearish sentiment in the news, the technical support levels on ETH’s chart present a different perspective. This divergence suggests a more nuanced view of the market compared to the predominantly negative news sentiment.

The ETHBTC chart indicates a potential turnaround in the price of ETH relative to Bitcoin, with a long-term falling trendline offering support. However, sustained bullish momentum for ETH is contingent on surpassing the 0.05 level in BTC terms.

In conclusion, the ongoing weakness in ETH’s price aligns with earlier predictions of a market downturn. While ETH is currently testing crucial support levels, a sustained drop below $2,100 could signal a more concerning outlook for the cryptocurrency. Despite the risks, the probability of such a scenario remains relatively low.

As the market continues to evolve, monitoring key support levels and price action will be essential in assessing the future trajectory of Ethereum and the broader cryptocurrency market.