Ethereum Drops Under $3000, What’s Next for the Top Altcoin?

There’s a major bloodbath in the crypto lane as once again the top cryptocurrency Bitcoin fell under the $40K mark and Ethereum followed suit. Both the top assets Bitcoin and Ethereum were down by over 8% on their daily charts as prices fell below crucial support levels. 

The larger market sell-offs took the global crypto market cap to $1.83 trillion, a 7.75% decrease over the last day. While most of the top coins lost value, Ethereum tested the $2800 mark after 3-months as the top altcoin’s trajectory looked predominantly bearish. 

Ethereum Price Action 

The top altcoin after charting an over 70% price rally in the beginning of the last quarter of 2021 made a new all-time high of $4867 on November 10.

Since then for the most part of the last three months, ETH has made lower lows and lower highs despite the occasional pumps. That said, ETH’s price trajectory presented an inverse parabola as the price was back to the lower level from where it picked up over three months ago. 

While a year back in January 2021, ETH traded at $1,039 and ETH HODLers were still making +159.75% ROI vs USD (yearly ROI) the recent price drop had put the top altcoin back to the September 2021 price level. 

Further, Ethereum’s Relative Strength Index (RSI) on a daily chart fell in the oversold zone yet again and noted 25.23 at the time of writing. This was the second time ETH’s RSI fell in the oversold zone this year, while in the last year ETH’s RSI had maintained above the 40 mark throughout the year barring the May sell-offs. 

Where Could Ethereum be Headed?

After Ethereum’s price broke below the multi-month support line of around $2,900 that was in play since September last year, a panic sell sentiment was seen as sellers in the market rose. However, a further over 10% decline in price could be expected from ETH if it fails to hold the $2800 support. 

That said, a spike in buy orders had also pushed ETH below the lower boundary of the descending channel on a 4-hour chart. For now, with the market painted in red as most of the top 100 cryptocurrencies see a drop, ETH’s chances of a quick recovery or dissociation from the larger trend look bleak.