Key Points:
- Ethereum’s price dropped almost 19% in the past 10 days.
- Market trends and currency changes might affect ETH further.
- Key support levels could decide Ethereum’s next move.
On September 4, 2024, Ethereum (ETH) fell to $2,318. This drop, which is nearly 19% over the last 10 days, raises questions about whether Ethereum might drop even more. Recent market trends suggest that Ethereum could face more challenges ahead.
Several factors have contributed to Ethereum’s recent decline. Nvidia’s stock fell 9% in one day, causing concerns about a broader market drop. Bitcoin also lost value, increasing worries about the entire crypto market. Additionally, the US Dollar strengthened by 2%, which may be putting more pressure on Ethereum and other cryptocurrencies.
Predictions and Price Levels
Back on August 2, 2024, when Ethereum was trading above $3,000, InvestingHaven predicted that the price might fall in the coming months. Their research looked at several possible price levels based on Fibonacci retracement:
- $3,120.84: A 25% drop, still seen as a positive signal.
- $2,555.55: A 38.2% drop, still seen as a positive signal.
- $2,130.27: A 50% drop, with mixed signals.
- $1,780.11: A 61.8% drop, seen as a negative signal.
- $1,454.11: A 75% drop, also seen as a negative signal.
Right now, Ethereum’s price chart does not look strong, but it is holding support around $2,200. This support level is important because it might help prevent further declines. A long-term trendline on the chart could offer extra support, making this a crucial level to watch.
Future Outlook and Market Reactions
Ethereum’s performance compared to Bitcoin (ETHBTC) is also important. The long-term trendline for ETHBTC could provide support, but Ethereum needs to rise above 0.05 BTC to show stronger performance.
Overall, the recent weakness in Ethereum’s price fits with earlier predictions. August and September are usually weaker months for cryptocurrencies due to market volatility. If Ethereum can stay above $2,100, the recent drop is expected and manageable. A further drop below this level would be more concerning but is seen as less likely right now.
Looking Ahead
As Ethereum tests these key support levels, its future will depend on overall market conditions and how well it holds these levels. Investors should monitor these important levels and market trends to get an idea of Ethereum’s next moves.
