- The price of ETH fell below $3000 on April 30.
- The decline is likely to continue as bearish momentum rises.
Ethereums [ETH] A brief dip below $3,000 during the April 30 trading session led to a spike in social activity, Santiment noted in a post on X (formerly Twitter).
🗣️ #Bitcoin And #Ethereum are seeing significantly higher discussion today compared to other assets. Traders have shown a significant amount of fear $BTC drop to $59.5K and $ETH as low as $2.9K today. Counter traders have used these signs to a great advantage #buydip… pic.twitter.com/6pRAFHidcD
— Santiment (@santimentfeed) April 30, 2024
According to the on-chain data provider, the altcoin was second in terms of social discussion after Bitcoin at the time of writing [BTC].
Between April 29 and 30, ETH’s social dominance skyrocketed by 150% as chatter around the coin increased on Telegram, Reddit, X, and 4Chan.
Rising or falling?
Typically, when an asset’s price drop is followed by a rise in social activity, it often signals an impending price correction.
However, a look at the coin’s price movements on a daily chart suggested that ETH may not be ready for a significant recovery in the near term. The price can have even more disadvantages.
Readings of the coin’s Fibonacci Retracement levels showed that ETH’s decline below $3000 marked a break from a key support level, which had been reached in recent weeks at $3145.
Trading hands at $2,899 at the time of writing, the likelihood of a further decline remains high as demand for the leading altcoin continues to decline among market participants.
For example, ETH’s key momentum indicators were below their respective midlines at the time of writing. The Relative Strength Index (RSI) stood at 45.31, while the Money Flow Index (MFI) stood at 40.50.
At these values, the indicators indicated a preference for coin distribution over accumulation.
Furthermore, the coin’s MACD line (blue) rested below the signal line (orange) and was approaching the zero line at the time of printing.
When an asset’s MACD line is below its signal line, it indicates a rise in bearish momentum. This means that the asset’s price could be in a downward trend or is expected to experience downward pressure soon.
Traders often interpret it as a potential sell signal.
Source: ETH/USDT on TradingView
Read Ethereum’s [ETH] Price forecast 2024-25
If bearish momentum rises, ETH’s next price level could be $2867.
However, if the bulls increase their demand and are able to initiate a price rally, the coin could correct its move, regain support at $3145, and recover towards $3300.