It’s a time for treatment yet again for the short traders as the markets maintain a constant downtrend since the mid of Q4 2021. Ethereum which once traded above $4500 is now plummeting hard below $2900 levels. The drop in value of nearly 42% was mainly fueled by 3 extreme sell-offs other than the usual market movements. However, the plunge could continue, but as the bulls were trapped, bears will also be trapped very soon.
Ethereum price ever since dropped below $4000 and tried to break the downtrend line a couple of times. Woefully the bulls got trapped, each time they attempted to uplift the price above the downtrend. The asset shed more than 23% in its value each time the price tried to slice through the trend line.
However, the current plunge appears to have halted after dropping nearly 14%, no doubt it is huge for ETH price, yet something better than the previous drops.
As mentioned the bulls were earlier trapped at $3832 and later at $3269, they need to wait for a specified period of time before the price hits the potential target. Yet each time, currently, the ETH price may again consolidate for a certain time and yet again may plunge down on hitting the trend line. The price drain may drag the price towards the high-demand area just below $2600. Here is when the trading volume may experience a huge spike that may uplift the price above $2900 but may not hit $3000.
However, Ethereum could consolidate just below $3000 for a couple of days before it slices through the potential target. However, as the ETH price movements are pretty slow yet steady, the breakthrough from $3000 levels may take a little more time than the average.
Source: https://coinpedia.org/price-analysis/ethereum-traps-the-bulls/