- ETH was trading at a significant support level.
- Key technical indicators point to the possibility of a continued decline in the value of ETH.
Leading altcoin Ethereum [ETH] continues to hold at a crucial support level as price trends are in a descending channel.
A descending channel is formed when the price of an asset continues to reach lower highs and lower lows, indicating a broader downtrend.
Measurements of ETH’s price movements on a daily chart showed that this channel was formed on March 12. Since then, the value of the coin has fallen by 28%.
According to CoinMarketCaps data, the altcoin was exchanging hands at $2915 at the time of writing.
A break below or a break above?
If ETH bulls fail to defend the coin’s current support level at $2,850, its price could trigger a decline below the lower trendline of the descending channel.
If this happens, the altcoin will exchange hands at the $2600 level.
AMBCrypto’s assessments of some key technical indicators pointed to the possibility of a break below the current support level.
For example, ETH’s key momentum indicators indicated that the coin’s sell-off exceeded accumulation among market participants.
The coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were below their respective neutral positions at the time of writing. ETH’s RSI was 39.52, while its MFI was 49.39.
ETH’s Elder-Ray Index returned a negative reading, confirming the current bearish trend. This indicator measures the relationship between the strength of buyers and sellers in the market.
When it returns a negative value, it means that bear power is dominant in the market.
Likewise, the points that make up ETH’s Parabolic SAR were noted above the price at press time. These dots have been positioned this way since early May.
The parabolic SAR indicator is used to identify potential trend directions and reversals. When the dotted lines are placed above the price of an asset, the market is said to be in decline.
Read Ethereum’s [ETH] Price forecast 2024-25
It indicates that the price of the asset has fallen and may still be continuing.
Source: ETH/USDT on TradingView
Should ETH bears force a break below the current support level, the coin’s next price could be $2780. However, if this projection is debunked, the altcoin could soar above $3,000.