Is Ethereum Sliding Below $3000 as Bitcoin Heads to $88,000?
The cryptocurrency market is plummeting! Bitcoin formed a low below $92,000 after falling to hold above gains. Meanwhile, the recent $4,100 rejection appears to have affected the Ethereum price The rebound comes as the coin is expected to lose support at $300. On the other hand, traders’ interest in the coin has waned to a great extent as the number of transactions and volume have decreased.
Active address count is a metric that reflects platform traffic, which in turn affects the token’s volatility. Rising levels indicate an increase in buy, sell or swap transactions on the platform, which may increase or decrease the price. This price change attracts new trading volume, which usually benefits the bulls. Unfortunately, these levels have been declining since the final days of 2024 and, despite some rebound, have continued to form lower highs and lows.
This indicates a significant drop in trader participation and therefore the number of trades. The price is expected to maintain a consolidation trend. As the negative impact on the market increases, the ETH price is expected to see a 10% correction.
Weekly price action suggests that the price is testing the immediate support zone below $3,000 between $2,929 and $2,814. However, a rebound is expected after reaching these levels, which could pull it back to $4,000. This could complete an inverse head and shoulders pattern and could trigger a further 50% surge to new highs above $6,500.
Previously, when Ethereum (ETH) price fell below the neckline of a head-and-shoulders pattern, it triggered a 60% retracement, forming lows below $1,000. Therefore, the reverse effect now could trigger a similar rally, forming a new ATH in the coming days.
