Advertisement
AD

Main navigation

Ethereum (ETH) Could Be on Verge of Another Crash

Advertisement
Thu, 15/06/2023 - 12:41
Ethereum (ETH) Could Be on Verge of Another Crash
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

The recent technical analysis for Ethereum suggests that the market titan might not be immune to a substantial downturn. If the trendline support that Ethereum is currently testing is broken, the coin could plummet to a staggering $1,380, representing a drastic decline from its current standing.

Advertisement

To understand how this could occur, it is essential to understand the function of the trendline support. In technical analysis, the trendline support level acts as the floor or safety net for an asset's price, preventing it from falling further.

Article image
Source: TradingView

Currently, Ethereum is precariously perched on this threshold. If this support line breaks, it is a strong indication that selling pressure has surpassed buying pressure, potentially triggering a sharp drop in price to the next support level, which, for Ethereum, stands at $1,380.

In normal market circumstances, a spike in trading volume often accompanies a significant price move. High trading volume can indicate strong investor interest and validate a price move in either direction. It is an essential element that often hints at an upcoming volatile move for a digital asset. However, Ethereum is currently experiencing the opposite scenario. Without a significant volume spike, the current trendline support test raises concerns.

Advertisement

Related

Despite the apparent gloom and doom of this scenario, the silver lining lies in the concept of market correction. Corrections are generally seen as healthy for the market in the long term, shaking out weak hands and potentially setting the stage for future growth. If Ethereum does fall to $1,380, it could potentially attract more buyers at a more attractive price point. This influx of buying pressure can then serve as the springboard for Ethereum's price to bounce back.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD