- Altcoin metrics revealed that ETH fell below its possible market bottom on the charts.
- A drop below $2.4K could send ETH down to $2.3K
Like most cryptos on the market, Ethereum (ETH) has also been the victim of price corrections in the last 24 hours. In fact, ETH’s latest decline pushed the token towards a crucial support level on the charts.
If tested successfully, what are the chances that ETH will return to $3,000?
The latest support for Ethereum
Ethereum’s losses over the past 24 hours were more than 5%, with the altcoin trading just above $2.5k at press time. Meanwhile, Ali, a popular crypto analyst, shared a tweet revealing an important development. According to the same, ETH had already managed to hold its support at $2.4k. However, the most recent price drop could push the token towards this level again.
Here, it is also worth noting that ETH has been moving in an ascending channel pattern since 2021. The token has tested the pattern several times. If history repeats itself, it won’t be long to expect the king of altcoins to move towards $3,000 in the coming days.
In fact, if things fall into place, then ETH might as well hit $4,000 in the coming months.
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Chances of ETH hitting $3,000
AMBCrypto then checked Ethereum’s on-chain data to see if the token could start moving towards $3,000 soon. According to our analysis of Glassnode data, the ETH price has fallen below its possible market floor of $2.58k.
The Pi Cycle Top indicator highlighted that the possible ETH market high could be $5.7k. Therefore, expecting ETH to reach $3,000 will not be too ambitious for investors.
Source: Glassnode
Our review of CryptoQuant data also highlighted some bullish metrics. For example, the ETH exchange reserve has fallen. This meant that buying pressure on ETH was high, often leading to price increases.
In the derivatives market, everything seemed optimistic. The ETH funding rate suggested that long traders were dominant and were willing to pay short traders. In addition to this, the buy/sell ratio of Ethereum takers has turned green. This indicates that buying sentiment was dominant among derivatives investors.
Source: CryptoQuant
Finally, AMBCrypto’s analysis of CFGI.io results data suggested that Ethereum’s Fear and Greed Index was in a “fear” position. Whenever the metric reaches this level, it indicates that the chances of a bullish trend reversal are high.
Read Ethereum (ETH) Price Prediction 2024-2025
However, if the downtrend persists, investors could soon see ETH test its $2.4k support. An unsuccessful test could send the token down to $2.3k in the following days.
