Ethereum bulls lose $3K support line

Ethereum fell below the 200 Exponential falling Average (EMA), a sign that a downturn has begun. A technical indicator that may be used to identify both upward and downward trends in any asset is the 200 EMA. An asset is said to be in an uptrend if it is going above the 200 EMA in a longer time frame.

On the other hand, a downtrend is indicated if it is below the 200 EMA. Since November 2023, ETH has dropped below 200 EMA twice. This is the second instance.

Ethereum’s price is below $3K, down 4% today. Coinglass data showed the negative shift resulted in $80 million in liquidations over the previous day, with long and short liquidations totaling $71 million and $8.6 million, respectively.

About three small-bodied candlesticks were recorded by ETH before the price decline, suggesting that traders were unsure about what to do. However, bears are now outnumbering bulls due to the Federal Reserve’s decision to maintain interest rates at current levels and Genesis Trading’s recent settlement of debtors. Ethereum’s Long/Short Ratio decreased to 0.89 over the last day.

If ETH bounces off the key support level between $2,852 and $2,803, it may attempt to form a W. Since buyers have successfully defended this level on several occasions in the last four months, ETH might find support here and move up to test the resistance level at $3,731. However, ETH has to overcome the obstacle of surpassing the $3,357 mark.

The 50-day Simple Moving Average (SMA), is above the price of ETH on the daily chart and could serve as resistance at $3,357. A drop below the $2,803 support level will thwart the bullish argument.

Nevertheless, some upcoming difficulties in the cryptocurrency market could hinder ETH’s chances of recovery in August. The Mt. Gox BTC repayment could also add bearish pressures on the crypto market .

Arkham Intelligence data highlighted Genesis Trading moved roughly 32,256 BTC and 256,775 ETH worth $2.1 billion and $838 million to various addresses over the last three days while going through bankruptcy procedures to start paying back creditors.

In January 2023, the business declared bankruptcy due to misappropriation via the Gemini Earn scheme. The court permitted it to restitute $3 billion in customer assets as part of a bankruptcy liquidation plan.