Ethereum (ETH) Price Drop To $3093: Is a Bigger Crash Ahead?

Ethereum (ETH), the largest altcoin by market value, experienced a sharp drop in its native token, Ether, falling 6% to around $3,092 on July 4. This marks its worst daily performance in three weeks. However, Veteran crypto analyst Wolf believes Ethereum is at a crucial point, attempting a bearish move that could heavily influence its future price.

Ethereum To Face Decline

Ethereum’s downturn is primarily driven by fears of a Bitcoin market dump and declining institutional interest. According to Wolf’s analysis, ETH is currently attempting to break below the diagonal support, a move that, if successful, could indicate further downward pressure. This critical support level has been a key factor in maintaining ETH’s recent price stability.

For the bulls to regain control and prevent a bearish downturn, the daily candle must close with a wick and return above the diagonal support. This move would signal that the bulls are still in the game and could potentially push the price higher.

However, if ETH fails to close above the diagonal support, it could spell trouble for the bulls. A confirmed break below this level could lead to increased selling pressure and further price declines, making it a crucial moment for Ethereum traders and investors.

Few Days Left For the ETH ETF Listing

Normally, with only days left for the Spot ETH ETF listing, investors did not expect such a scenario. The final submission date for the S-1 Form for ETH ETF applications is July 8, and there is speculation that the SEC might approve the listings next week. If the approval happens, it could trigger a significant price increase.

Any rise in ETH’s price is likely to be driven by the SEC’s approval or by strong initial inflows or maybe outflows in the first few days. The first targets to watch are $3,413 and $3,475.

Ethereum Techincal Analysis

Ether’s recent losses are part of a broader pullback that began after the price encountered resistance at the 200-4H exponential moving average (EMA) and the upper boundary of its descending channel.

As of July 4, ETH is testing the lower trendline of this channel for support, with the potential for a rebound. However, Ethereum is trading at $3,020 reflecting a drop of 6.8%. Despite the decline 24hours trading volume has seen a surge of 43% with a market cap of $372 billion.