Ethereum from the past 3 days in a row has been dropping to a large extent and was about to revisit the lower support levels when the asset pulled itself back. Currently, the ETH price is trying to sustain above these levels and eventually regain the levels above $3300. No doubt the asset may find an interim relief, yet the fear of a notable drain still haunts the rally. Here are the top reasons why Ethereum may revisit the levels below $2900.
Ethereum fell into a deep bearish trap
Ethereum price ever since attained its ATH fell into a bearish trap which extracted most of its gains. During sliding down, the asset tested every support level and brokedown without enough momentum. Currently, a similar trend is expected to repeat again as the asset is yet again consolidating along with the support levels
The Ethereum price during the recent sell-off could not hold firmly within the symmetrical triangle and plunge down heavily. The price had not reached the apex, and hence after forming multiple lower lows, the price finally dropped down heavily.
More Sellers Jump-In
According to IntotheBlock reports, huge buyers have opened their positions at an average price of $3175. Here as many as 952K addresses have purchased a total of 792K ETH and hence it may be considered as the strong support levels to hold. If the asset losses the above-mentioned support levels, then it may drop below $3000 quickly.
As for the reason the next cluster of purchases is around $2893 where nearly 669K ETH was bought by nearly 580K addresses. Currently, they are in a decent profit, but if the price breaks the $3000 zone, then these buyers instead of going in loss may try to incur some profits. However, the phase of panic selling is not expected with the ETH price, yet minor pullbacks with a decent recovery may be on their way.
Source: https://coinpedia.org/price-analysis/ethereumeth-price-remains-above-crucial-zones/